Energy Development Oman issues USD 10-year sukuk worth $650m

29/01/2026 04:24 AST

Energy Development Oman (EDO) has announced the s issuance of a USD 10-year Sukuk of RO 250 million ($650 million), maturing in January 2036.

Priced at a profit rate of 5.14 per cent, the Sukuk achieved a credit spread of 100 basis points over the 10-year US Treasury benchmark, representing the tightest pricing ever secured by an Omani government-related entity (GRE)., reported ONA

This follows the recent upgrade of both EDO and Oman to investment grade (BBB-) by Fitch, matching that from S&P.

This marks EDO's third US dollar Sukuk issuance, building on the company's earlier transactions in 2023 and 2024.

The 5.14 per cent profit rate compares favourably to the 5.875 per cent achieved for EDO's debut 10-year Sukuk and the 5.662 per cent secured for the 7-year issuance in 2024, underscoring a strong pricing outcome, particularly in light of challenges facing international markets.

The decision to move swiftly in early January allowed EDO to take advantage of a constructive window in the market and secure a portion of its 2026 financing early in the year. Citi, J.P. Morgan and Standard Chartered acted as Global Coordinators on the transaction, while DIB, HSBC, Mashreq and Sohar International joined as Joint Bookrunners.

The issuance attracted strong and diversified participation from investors across Asia, Europe, the GCC, the UK and the US.

With this latest transaction, EDO extends the average tenor of its debt portfolio while further optimising its overall cost of funding.

Sultan Al Mamari, Chief Financial Officer at EDO, said: "EDO is delighted with the success of our latest USD Sukuk, which set a new benchmark for attractive pricing by an Omani GRE. We are pleased to have locked in a significant portion of our financing requirements early in 2026, given the uncertain global outlook. The success of this transaction reflects the improvement in EDO's and Oman's credit standing, as well as investor endorsement of EDO's business strategy."

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