EDO successfully issued 7-year US$750 million Islamic bonds

Muscat: Energy Development Company of Oman (EDO) SAOC announced the issuance of $750 million of Islamic bonds. The issuance was over four times subscribed, reflecting the strong confidence of investors in the Sultanate of Oman and EDO as the country’s energy leader.

Investor participation was very high, with more than 115 orders from Europe, the UK, the US, the Middle East and Asia. The sukuk was successfully priced with a yield of 5.662% and a maturity of seven years. This is the second sukuk issued by EDO, the previous one was issued in September 2023 with a maturity of ten years and a yield of 5.875%.

Commenting on the new bond issuance, Sultan al Mamari, Chief Financial Officer of EDO, said: “This is an important milestone, as it is our second bond issuance in the last nine months. Our latest Sukuk transaction has a significantly lower margin, which has resulted in savings for EDO and the state.”

He added: “This result underscores the recognition by international investors of our ongoing commitment to supporting Oman’s energy strategy. We are grateful for the trust placed in us by our investors, which underscores our strong credentials and our transformation into a fully integrated energy business.”

The senior unsecured sukuk Al Ijara/Murabaha has been rated BB+ by Standard & Poor’s and Fitch and is priced at a 1.35% spread over US Treasuries. The trust certificates will be issued within the framework of the trust certificate issuance programme of EDO Sukuk Limited.

Abu Dhabi Commercial Bank PJSC, Bank Muscat SAOG, Citigroup Global Markets Inc., Dubai Islamic Bank PJSC, Emirates NBD PJSC, HSBC Bank plc, JPMorgan Securities plc, Bank Mashreq PSC and Standard Chartered Bank acted as joint lead managers and bookrunners for the offering.

Energy Development Oman (EDO) was established in December 2020 by Royal Decree (2020/128) to pursue new growth opportunities and improve efficiency in Oman’s energy sector. The company is committed to being a world-class growth partner while driving a sustainable energy future and focusing on developing the country’s energy and alternative energy sectors in line with Oman Vision 2040.

The company holds 60% ownership of the Block 6 oil concession of Petroleum Development Oman (PDO), 100% ownership of the Block 6 non-associated gas concession and 100% of the shares of Oman Hydrogen Company Limited.