EDO Issues $650M 10-Year Sukuk: What This Means for Investors and Business Growth in Oman
MUSCAT: Energy Development Oman (EDO) has successfully issued a $650 million (RO 250 million) 10-year sukuk, maturing in January 2036. This issuance is a key part of EDO’s financing strategy aimed at supporting its annual capital expenditure needs, diversifying funding sources, and optimizing its capital structure.
The sukuk was priced at a profit rate of 5.14%, achieving a credit spread of 100 basis points over the 10-year US Treasury benchmark. This represents the tightest pricing ever achieved by an Omani government-related entity (GRE). The successful issuance follows recent Fitch credit rating upgrades for both EDO and the Sultanate of Oman to investment grade (BBB-), consistent with S&P ratings.
This marks EDO’s third US dollar sukuk issuance, following previous offerings in 2023 and 2024. The 5.14% profit rate compares favorably to the 5.875% rate from EDO’s inaugural 10-year sukuk and the 5.662% rate from the 7-year issuance in 2024, highlighting strong pricing results despite lower oil prices and heightened geopolitical risks.
By acting swiftly in early January, EDO capitalized on a favorable market window to secure a substantial portion of its 2026 financing needs ahead of schedule. Citi, JP Morgan, and Standard Chartered served as Global Coordinators, while DIB, HSBC, Mashreq, and Sohar International acted as Joint Bookrunners. The issuance drew robust and diverse investor participation from Asia, Europe, the GCC, the UK, and the US.
This transaction extends the average maturity of EDO’s debt portfolio and further optimizes its overall funding costs.
Eng Sultan al Mamari, EDO’s Chief Financial Officer, stated: “EDO is delighted with the success of our latest USD sukuk, which sets a new benchmark for attractive pricing by an Omani GRE. Securing a significant portion of our financing early in 2026 amid an uncertain global outlook is a positive achievement. The transaction underscores improvements in the credit standing of both EDO and Oman, as well as investor confidence in EDO’s business strategy.”
Since its establishment, EDO has played a critical role in creating a more resilient and commercially sustainable energy sector in Oman. Through consistent performance, disciplined investment, and enhanced integration across the energy value chain, the company has safeguarded production, strengthened energy security, and ensured long-term value creation for the Sultanate of Oman.
Special Analysis by Omanet | Navigate Oman’s Market
Energy Development Oman’s successful $650 million sukuk issuance at a historic low profit rate reflects strong investor confidence and the positive impact of Oman’s upgraded credit rating. For businesses, this creates an opportunity to leverage improved financing conditions and signals sustained government support in the energy sector amidst global uncertainties. Smart investors should consider the stability and growth potential of Oman’s energy market, while entrepreneurs might explore synergies aligned with energy sector investments and financing innovation.
