MUSCAT: Power Construction Oman (EDO) has introduced the a hit issuance of a $650 million (RO 250 million) 10-year sukuk, maturing in January 2036. This transaction is a part of EDO’s ongoing financing method to give a boost to a portion of its annual capital expenditure necessities, diversify its investment resources and optimise its capital construction.
Priced at a benefit fee of five.14%, the sukuk completed a credit score unfold of 100 foundation issues over the 10-year US Treasury benchmark, representing the tightest pricing ever secured via an Omani government-related entity (GRE). This luck follows the new improve of each EDO and the Sultanate of Oman to funding grade (BBB-) via Fitch, matching that from S&P.
This marks EDO’s 3rd US greenback sukuk issuance, development at the corporate’s previous transactions in 2023 and 2024. The 5.14% benefit fee compares favourably to the 5.875% completed for EDO’s debut 10-year Sukuk and the 5.662% secured for the 7-year issuance in 2024, underscoring a robust pricing result, in particular in gentle of decrease oil costs and higher geopolitical uncertainty.
The verdict to transport hastily in early January allowed EDO to benefit from a positive window available in the market and protected a portion of its 2026 financing early within the 12 months. Citi, JP Morgan and Same old Chartered acted as World Coordinators at the transaction, whilst DIB, HSBC, Mashreq and Sohar World joined as Joint Bookrunners. The issuance attracted sturdy and different participation from buyers throughout Asia, Europe, the GCC, the United Kingdom and the USA.
With this newest transaction, EDO extends the common tenor of its debt portfolio whilst additional optimising its total price of investment.
Eng Sultan al Mamari, Leader Monetary Officer at EDO, stated: “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 status quo, EDO has performed an instrumental position in shaping a extra resilient and commercially sustainable power sector in Oman. Via constant supply, disciplined funding, and nearer integration around the power price chain, the corporate has safeguarded manufacturing, reinforced power safety, and ensured the field continues to generate long-term price for the Sultanate of Oman.
