Energy Development Oman (EDO) has successfully tightened the pricing of its $640 million 10-year benchmark sukuk. From the start, Oman benchmark sukuk issuance demonstrates the company’s commitment to raising capital efficiently and attracting strong investor demand.
The company set the final price at 100 basis points over US Treasuries, down from initial thoughts near T+135bps. Consequently, the sukuk carries a 5.14% profit rate and yield, with a reoffer price at par. This pricing reflects robust market interest and confidence in the state-owned energy company.
Orderbooks peaked at $1.9 billion, excluding joint lead manager interest, before settling at $1.3 billion at launch. As a result, investors clearly demonstrated strong appetite, supporting the success of the offering. Meanwhile, the sukuk follows an Al-Ijara / Murabaha structure, consistent with international Islamic finance standards.
The sukuk has an expected rating of BBB–/BBB– from S&P and Fitch, aligning with the company’s own credit rating. To execute the issuance, Citigroup, JP Morgan, and Standard Chartered acted as joint global coordinators. At the same time, they served as joint lead managers and bookrunners alongside Dubai Islamic Bank, HSBC, KFH Capital, Mashreq, and Sohar International.
EDO Sukuk serves as the trustee for the Regulation S senior unsecured trust certificates. Meanwhile, EDO Gas SPC acts as obligor, with Energy Development Oman guaranteeing the bonds. These arrangements ensure clarity, compliance, and investor protection throughout the transaction.
The sukuk will list on the London Stock Exchange’s Main Market, broadening investor access and enhancing liquidity. Previously, in October, the company issued a 50 million Omani rials ($130 million) sukuk on the Muscat Stock Exchange. That offering carried an annual profit rate of 4.40%, highlighting consistent engagement with local and international markets.
Investors and analysts noted that Oman benchmark sukuk issuance signals confidence in the country’s energy sector and capital market framework. Furthermore, the success of this sukuk underscores growing demand for Islamic finance instruments in the region.
By completing this transaction, Energy Development Oman strengthens its financial position and supports ongoing projects. Ultimately, Oman benchmark sukuk issuance marks a key milestone for the company, reflecting both market credibility and strategic growth objectives.
