Muscat: The 10-year sukuk, due in January 2036, was priced with a profit rate of 5.14 per cent, equivalent to a margin of 100 basis points above 10-year US Treasuries, the lowest margin ever achieved by a government-related company in Oman. The issuance reflects the company’s strategy to finance part of its annual capital expenditure, diversify funding sources, and enhance the efficiency and flexibility of its capital structure.
The offering follows the recent upgrade of the sovereign credit rating of the Sultanate of Oman and Energy Development Oman to investment-grade status by Fitch Ratings, aligning with the BBB- rating by Standard & Poor’s.
This marks Energy Development Oman’s third US dollar sukuk issuance, following offerings in 2023 and 2024. The latest pricing represents a clear improvement from the 5.875 per cent recorded in the first 10-year sukuk and the 5.662 per cent profit rate on the 7-year sukuk issued in 2024, despite ongoing volatility in global financial markets.
Launched in early January, the transaction allowed the company to capitalise on favourable market conditions and secure part of its 2026 financing needs well in advance. Citibank, JPMorgan and Standard Chartered acted as global coordinators, while Dubai Islamic Bank, HSBC, Mashreq, and Sohar International served as joint bookrunners.
The issuance attracted strong and diversified demand from investors across Asia, Europe, the GCC, the UK, and the United States, underscoring broad international confidence in Oman’s credit outlook and the company’s financial strategy.
Commenting on the achievement, Eng. Sultan bin Ali Al Maamari, President of Energy Development Oman, said the issuance demonstrates the company’s ability to access international financial markets on competitive terms and reaffirms investor confidence in its financial performance and credit strength. He noted that the sukuk also supports early funding for 2026, providing greater flexibility in managing financial liabilities amid global market fluctuations.
Al Maamari added that the transaction coincides with improved credit ratings for both the company and the Sultanate, further strengthening investor trust in Energy Development Oman’s long-term strategy.
Energy Development Oman successfully raised $650 million through a 10-year sukuk at a record-low margin, reflecting strong investor confidence and improved credit ratings. The issuance, priced at a 5.14% profit rate, aims to diversify funding sources and enhance capital structure flexibility, attracting global demand and securing early funding for 2026 amid favorable market conditions.