OETC’s $750 Million Green Sukuk: How This Landmark Issuance Impacts Sustainable Investment Opportunities in Oman
MUSCAT: Oman Electricity Transmission Company (OETC), the sole owner and operator of Oman’s electricity transmission network, has successfully priced and issued its inaugural green sukuk, amounting to RO 288.5 million (USD 750 million) for a term of five years. This issuance represents a significant advancement in sustainable financing and reinforces OETC’s commitment to Oman Vision 2040.
Investor demand for the sukuk surpassed 2.8 times the subscription volume, demonstrating robust confidence in OETC’s strategic role and financial strength, which is underpinned by credit ratings of Ba1 (stable) from Moody’s and BB+ (stable) from Fitch, along with a commendable sustainability track record.
This issuance is aligned with the priorities of Oman Vision 2040, focusing on economic diversification, environmental sustainability, and the transition to a low-carbon economy. It supports the national objective of achieving 30% renewable energy production by 2030 and Oman’s ambition to attain carbon neutrality by 2050. The proceeds from the sukuk will be used to finance and refinance eligible green projects, including renewable energy interconnection, grid modernization, energy efficiency improvements, and enhancements to the electrical transmission system to facilitate the integration of clean energy.
The transaction was carried out by a banking consortium that includes Citi, JPMorgan, and Standard Chartered as joint global coordinators, with support from Abu Dhabi Commercial Bank, Bank ABC, Bank Muscat, Credit Agricole, Dubai Islamic Bank, Mashreq Bank, and Oman Investment Bank as lead managers and bookrunners.
Eng Hisham bin Abdullah Al Riyami, Acting CEO, remarked that this issuance is a pivotal step toward establishing a more sustainable and resilient electricity grid, reflecting strong investor confidence in OETC’s long-term strategy and Oman’s stable economic climate. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent issuance of RO 288.5 million in green sukuk by Oman Electricity Transmission Company (OETC) signals a major shift towards sustainable financing in Oman. This opens up opportunities for businesses to align with national goals on renewable energy, while also presenting a risk for those not adapting to the green economy trend. Smart investors and entrepreneurs should consider engaging in emerging green projects to capitalize on the expected growth in this sector as Oman transitions to a low-carbon economy.
