OEDC Secures RO385 Million in Financing: What This Means for Investment Opportunities in Oman
Muscat – Oman Energy Development Company (OEDC) has successfully secured a total of RO385 million in financing, both internationally and locally, alongside issuing its inaugural local sukuk worth RO50 million. This strategy aims to bolster the company’s long-term sustainable growth.
This development highlights the enhanced financing capabilities of government-owned enterprises in Oman. OEDC demonstrates effective financial management by accessing both local and international financing markets under competitive terms.
In a statement to the Oman News Agency, it was noted that OEDC has completed a new five-year credit facility, increasing its value from $750 million to $1 billion due to heightened investor interest.
The overall coverage for this initiative surpassed $1.5 billion, with over half of the final allocation sourced from outside the region, demonstrating broad participation from Asian banks and confirming OEDC’s capacity to tap into diverse international liquidity.
The proceeds from the loan, totaling RO288.8 million ($750 million), are intended for various investments, as well as for repaying RO96 million ($250 million) of the existing RO769 million ($2 billion) loan, which is due in 2029. This repayment plan aims to enhance the company’s financing and capital structure.
The CEO of OEDC also stated that the company has refinanced its facilities in Omani riyals. The fixed-term loan of RO375 million has been refinanced for the same amount, extending its maturity to 2028, with two possible annual extension options at the company’s discretion. Additionally, the revolving credit facility has been increased from RO150 million to RO200 million, also extending its maturity to 2028.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s ability to access diverse international funding signals a strategic shift in financing dynamics, presenting new opportunities for businesses to leverage competitive capital for expansion. As OEDC’s success demonstrates, efficient financial management can attract investors, suggesting that entrepreneurs should consider diversifying financing options and refining their capital structures to optimize growth. However, the reliance on continued investor interest poses risks that necessitate careful market analysis and proactive risk management strategies.
