Monday 01 / July / 2024
Muscat: Energy Development Oman (EDO) has announced the issuance of a $750 million Sukuk. The issue was more than four times oversubscribed, reflecting strong investor confidence in both the Sultanate of Oman and EDO as its national energy champion. Investor participation was widespread, with over 115 orders from Europe, the UK, the US, the Middle East, and Asia.
The Sukuk was successfully priced at a profit rate of 5.662 per cent with a term of seven years. This marks EDO’s second Sukuk issuance, following a previous deal in September 2023 for ten years at a profit rate of 5.875 per cent.
Commenting on the new issue, EDO’s Chief Financial Officer, Sultan Al Mamari said, “This is a significant milestone, our second issuance in the last nine months. Our latest Sukuk deal is at a significantly lower profit rate, representing savings for EDO and the country.”
He added, “The outcome underscores international investors’ endorsement of our ongoing commitment to bolster Oman’s energy strategy. We deeply appreciate the trust our investors have placed in us, highlighting our robust creditworthiness and our transformation into a fully integrated energy enterprise.”
Standard & Poor’s and Fitch have assigned a BB+ rating to the senior unsecured Sukuk Al Ijara/Murabaha, which has been priced with a spread of 1.35 per cent over US Treasuries. These trust certificates will be issued within the framework of EDO Sukuk Limited’s trust certificate issuance program.
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 collaborated as co-lead managers and bookrunners for the issuance.
