Oman’s EDO raises $650m to meet 2026 capex spend

State-owned Energy Development Oman (EDO) has raised $650 million through a US-dollar-denominated sukuk to support its annual capital expenditure and diversify its funding base.

The sukuk was priced at a profit rate of 5.14 percent, with a spread of 100 basis points over the 10-year US Treasury. This was the tightest pricing achieved by an Omani government-related entity, the company claimed in a statement.  

This is EDO’s third sukuk issuance, with pricing improving from 5.8 percent on its debut 10-year sukuk and 5.6 percent on a 7-year issue in 2024, despite lower oil prices and heightened geopolitical risks. 

The issuance attracted strong and diversified participation from investors across Asia, Europe, the GCC, the UK and the US.

“We have locked in a significant portion of our financing requirements early in 2026, given the uncertain global outlook,” CFO Sultan Al Mamari said.

The estimated capital expenditure for the year is $3.5 billion, according to its 2023 global medium-term note programme filing.

Citi, JPMorgan and Standard Chartered acted as global coordinators, while Dubai Islamic Bank, HSBC, Mashreq and Sohar International were joint bookrunners. 

Further reading:

• Oman’s EDO borrows $1bn for renewables expansion
• Oman’s Hydrom receives bids for renewables projects
• Energy Development Oman gets $1bn to refinance debt

In October EDO secured a $1 billion loan to fund a planned expansion of its renewable energy operations.

The company owns Hydrogen Oman (Hydrom), which is investing $20 billion in green-hydrogen projects across the sultanate. It plans to increase production by 20 percent to 1.4 million tonnes per year by 2030. 

It also owns 60 percent of crude oil production and 100 percent of gas extraction in block 6, operated by state-run Petroleum Development Oman.