EDO
Issues USD 10-Year Sukuk Worth RO 250 Million

Muscat,
28 Jan 2026 (ONA) — Energy Development Oman (EDO) has announced the
successful issuance of a USD 10-year Sukuk of RO 250 million (USD 650 million),
maturing in January 2036. This transaction is part of EDO’s ongoing financing
strategy to support a portion of its annual capital expenditure requirements,
diversify its funding sources, and optimise its capital structure.

Priced
at a profit rate of 5.14%, the Sukuk achieved a credit spread of 100 basis
points over the 10-year US Treasury benchmark, representing the tightest
pricing ever secured by an Omani government-related entity (GRE). This success
follows the recent upgrade of both EDO and the Sultanate of Oman to investment
grade (BBB-) by Fitch, matching that from S&P.

This
marks EDO’s third US dollar Sukuk issuance, building on the company’s earlier
transactions in 2023 and 2024. The 5.14% profit rate compares favourably to the
5.875% achieved for EDO’s debut 10-year Sukuk and the 5.662% secured for the
7-year issuance in 2024, underscoring a strong pricing outcome, particularly in
light of challenges facing international markets.

The
decision to move swiftly in early January allowed EDO to take advantage of a
constructive window in the market and secure a portion of its 2026 financing
early in the year. Citi, J.P. Morgan and Standard Chartered acted as Global
Coordinators on the transaction, while DIB, HSBC, Mashreq and Sohar International
joined as Joint Bookrunners. The issuance attracted strong and diversified
participation from investors across Asia, Europe, the GCC, the UK and the US.

With
this latest transaction, EDO extends the average tenor of its debt portfolio
while further optimising its overall cost of funding.

Commenting
on the issuance, Eng. Sultan al Mamari, Chief Financial Officer at EDO, said: “EDO
is delighted with the success of our latest USD Sukuk, which set a new
benchmark for attractive pricing by an Omani GRE. We are pleased to have locked
in a significant portion of our financing requirements early in 2026, given the
uncertain global outlook. The success of this transaction reflects the
improvement in EDO’s and Oman’s credit standing, as well as investor endorsement
of EDO’s business strategy.”

Since
its establishment, EDO has undertaken an instrumental role in shaping a more
resilient and commercially sustainable energy sector in Oman. Through
consistent delivery, disciplined investment, and closer integration across the
energy value chain, the company has safeguarded production, strengthened energy
security, and ensured the sector continues to generate long-term value for the
Sultanate of Oman.

—Ends/AG