Energy Development Oman (EDO) has recently announced the issuance of a $750 million Sukuk, which was more than four times oversubscribed. This reflects strong investor confidence in both the Sultanate of Oman and EDO as its national energy champion. Investors from various regions, including Europe, the UK, the US, the Middle East, and Asia, participated in the Sukuk issuance. The Sukuk was priced at a profit rate of 5.662 per cent with a seven-year term, marking EDO’s second Sukuk issuance after a previous deal in September 2023.
Sultan Al Mamari, EDO’s Chief Financial Officer, described the new Sukuk issuance as a significant milestone, highlighting the lower profit rate compared to the previous issuance, which will result in savings for EDO and the country. He emphasized that international investors’ endorsement of EDO’s commitment to bolster Oman’s energy strategy is evident in the successful Sukuk issuance. The assigned BB+ rating by Standard & Poor’s and Fitch further solidifies EDO’s creditworthiness and transformation into a fully integrated energy enterprise.
The senior unsecured Sukuk Al Ijara/Murabaha has been priced with a spread of 1.35 per cent over US Treasuries. These trust certificates will be issued under EDO Sukuk Limited’s trust certificate issuance program. The issuance was managed by Abu Dhabi Commercial Bank PJSC, Bank Muscat SAOG, Citigroup Global Markets Limited, Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, HSBC Bank plc, J.P. Morgan Securities plc, Mashreqbank psc, and Standard Chartered Bank as co-lead managers and bookrunners, showcasing a collaborative effort for the successful Sukuk issuance.
Overall, the issuance of the $750 million Sukuk by EDO demonstrates the strong investor confidence in Oman’s energy sector and EDO as a national energy champion. The widespread investor participation from various regions highlights the trust placed in EDO’s ongoing commitment to bolster Oman’s energy strategy. The lower profit rate of the Sukuk issuance compared to the previous deal reflects savings for EDO and the country, further strengthening EDO’s position in the energy market.
With the assigned BB+ rating by Standard & Poor’s and Fitch, EDO’s creditworthiness is solidified, emphasizing its transformation into a fully integrated energy enterprise. The successful pricing of the Sukuk at a profit rate of 5.662 per cent with a seven-year term underscores the strong interest from international investors and their endorsement of EDO’s strategic goals. The collaboration of various financial institutions as co-lead managers and bookrunners further showcases the credibility and support for EDO’s Sukuk issuance.
