Muscat – Energy Development Oman (EDO) has successfully completed a tap issuance of its existing $650mn 10-year sukuk, raising an additional $200mn and bringing the total issuance size to $850mn.

The sukuk, which carries a profit rate of 5.14%, will mature in January 2036, EDO said in a statement on Monday.

The company said the tap issuance forms part of its broader funding strategy aimed at supporting a portion of its annual capital expenditure requirements, while proactively managing its debt maturity profile and maintaining a diversified mix of financing sources across banking and international capital markets.

Despite ongoing geopolitical headwinds in global financial markets, EDO said it closely monitored market conditions and investor sentiment, identifying a favourable execution window supported by Oman’s strong macroeconomic resilience.

The transaction was priced at a credit spread of 77 basis points over the 10-year US Treasury benchmark, a significantly tighter level compared with the original issuance, reflecting strong investor appetite for both EDO’s credit and Omani sovereign exposure. HSBC acted as sole bookrunner for the transaction.

Sultan al Mamari, Chief Financial Officer of EDO, said, “EDO is pleased to have successfully upsized our 10-year US dollar sukuk, securing attractive long-term financing amid an environment of continued global uncertainty. The strong reception from the international investor community is a testament to confidence in Oman’s economic fundamentals and a clear endorsement of EDO’s strategic direction and financial discipline.”

Since its establishment, EDO has played a key role in supporting a more resilient and commercially sustainable energy sector in Oman. Through consistent operational delivery, disciplined capital allocation and deeper integration across the energy value chain, the company has helped safeguard hydrocarbon production, strengthen national energy security and position the sector as a long-term driver of economic value for the Sultanate.

EDO’s mandate is to optimise the commercial potential of Block 6, where it holds a 60% stake in the oil concession and full ownership of the gas concession. The company also aims to support Oman’s energy transition by balancing traditional hydrocarbon production with renewable energy projects, including solar and wind power.