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EDO raises $1bn from its inaugural sukuk

17 Sep 2023 By OUR CORRESPONDENT

Muscat – Energy Development Oman (EDO) announced the successful completion of its inaugural benchmark sukuk issuance of US$1bn on Sunday.

The offering was oversubscribed by more than five times, reflecting strong investor confidence in EDO as the national energy leader in the sultanate, a press release said.

Investor participation was widespread, with over 175 orders received from regions including Europe, the UK, the US, the Middle East and Asia. The sukuk was priced at a profit rate of 5.875% with a ten-year maturity period.

Commenting on the new issuance, Mazin al Lamki, CEO of EDO, said, “We take great pride in this significant transaction, which underscores international investors’ endorsement of our ongoing commitment to strengthen Oman’s energy strategy. We deeply appreciate our investors’ trust in us, highlighting our robust creditworthiness and our transformation into a fully-integrated energy enterprise. Furthermore, this fresh offering aligns with EDO’s funding strategy to extend the debt maturity timeline in accordance with our capital structure and corporate objectives.”

Mazin al Lamki, CEO of EDO

S&P Global Ratings and Fitch have assigned a BB rating to the senior unsecured Sukuk al Ijara/Murabaha, which has been priced with a spread of 165 basis points over US Treasuries. These trust certificates will be issued within the framework of EDO Sukuk Limited’s trust certificate issuance programme.

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