Energy Development Oman has launched a Oman sukuk issuance to raise capital and attract regional investor interest. The 10-year, dollar-denominated Islamic bond meets Sharia requirements while providing both security and attractive returns. By issuing the sukuk, the company can fund infrastructure projects, expand operations, and strengthen investor confidence across local and international markets.
The state-owned energy producer appointed Citigroup, JP Morgan, and Standard Chartered as joint global coordinators. While Dubai Islamic Bank, HSBC, KFH Capital, Mashreq, and Sohar International serve as lead managers and bookrunners. Investor calls begin this Tuesday, offering early access to regional and international participants. This strategy provides broad market coverage and highlights Oman’s growing prominence in Sharia-compliant finance.
The sukuk assigns EDO Sukuk as trustee, EDO Gas SPC as obligor, and Energy Development Oman as guarantor. This clear structure protects investors and ensures full compliance with Islamic finance principles. However, institutional and regional investors can participate confidently, knowing the arrangement follows rigorous governance standards. This approach strengthens the company’s funding base and supports long-term projects with reliable financing.
This issuance builds on a previous sukuk listed in October, which raised 50 million Omani rials ($130 million) on the Muscat Stock Exchange. That sukuk, structured under Al Ijarah and Al Wakalah certificates, offered 4.40 percent annual profit and attracted strong investor interest. The new issuance aims to secure larger-scale investment, expand the company’s international investor base, and reinforce confidence in its strategic growth plans.
Analysts note that the Oman sukuk issuance reflects a broader trend in Gulf energy finance, where Sharia-compliant debt grows in popularity. Its risk-sharing model and regulatory support make it appealing for long-term projects while providing stable funding. Investors benefit from transparency and predictable returns, while the company gains resources for development and expansion.
Looking ahead, the 10-year sukuk is expected to attract strong demand from regional and international institutions. The issuance demonstrates how Gulf state-owned companies use Sharia-compliant instruments to fund growth sustainably. Ultimately, the it shows strong investor confidence in the company and highlights Oman’s potential as a hub for Islamic finance.
