EDO Secures Strategic Financing: What This Means for Long-Term Business Growth Opportunities in Oman
Energy Development Oman (EDO) has successfully secured a $1 billion international loan and refinanced its Rial Omani loan facilities, enhancing its financial structure. These combined transactions extend the company’s debt maturity profile, reduce financing costs, and diversify its lender base, positioning EDO for future growth.
Mazin al Lamki, CEO of EDO, stated, “These transactions have achieved our key objectives of cost efficiency and investor diversification while strengthening our banking partnerships. They place EDO in a strong position to support further growth and reflect the confidence local and international banks have in our credit standing and long-term strategy.”
The five-year Term Loan was increased from the initial $750 million to $1 billion due to strong investor demand, with total commitments exceeding $1.5 billion. Over half of the final allocations came from outside the GCC, led by major Asian banks, demonstrating EDO’s ability to access diverse international liquidity. The loan proceeds will be used for general corporate purposes ($750 million) and to prepay part of an existing $2 billion facility maturing in 2029 ($250 million), helping to smooth the company’s debt maturity schedule. Mashreq and GIB acted as Joint Initial Mandated Lead Arrangers, Underwriters, and Bookrunners, spearheading the syndication, while Sohar International Bank served as the sole Omani Mandated Lead Arranger.
AlSalt al Kharousi, Country Head of Mashreq Oman, remarked, “At Mashreq, our role transcends capital provision — it’s about connecting global liquidity with national ambitions. By leading this $1 billion syndication alongside reputable institutions, we have reinforced Oman’s capacity to attract significant international capital on competitive terms. This transaction underscores our confidence in Oman’s growth trajectory and our commitment to supporting critical sectors that will position Oman as a regional hub for energy and infrastructure finance.”
Shortly before the international loan, EDO refinanced two Rial Omani loan facilities. The RO 375 million Term Loan was refinanced at the same amount and extended to 2028, with two annual extension options at EDO’s discretion. The RO 150 million Revolving Credit Facility (RCF) was increased to RO 200 million and also extended to 2028. Bank Muscat acted as the lead arranger and facility agent for both loans, backed by significant commitments from Sohar International Bank for the Term Loan and Bank Dhofar for the RCF.
Sultan al Maamari, CFO of EDO, commented, “The robust support from Omani banks in our domestic refinancing, combined with broad international participation in the USD transaction, demonstrates market confidence in EDO’s strategic direction. These achievements provide greater financial flexibility, a stronger maturity profile, and a more diversified lender base, supporting both current operations and future growth.”
Regarding the Rial Omani loans, Ahmed al Balushi, Deputy CEO — Banking at Bank Muscat, added, “As Oman’s largest financial institution, Bank Muscat is proud to serve as lead arranger and facility agent for these facilities and values the strong partnership with EDO.”
Special Analysis by Omanet | Navigate Oman’s Market
Energy Development Oman’s successful $1 billion international loan and domestic refinancing signal strong investor confidence and enhanced financial flexibility, positioning the company for robust future growth. For Omani businesses, this reflects increased access to diversified and cost-efficient capital, while investors should note the strategic importance of EDO’s strengthened credit profile amid evolving energy sector dynamics. Smart entrepreneurs and investors must consider the growing role of international partnerships and liquidity sources as key drivers for sustainable expansion in Oman’s energy and infrastructure markets.
