Omani Energy Giant Secures $750 Million Through Second Sukuk Offering

Energy Development Oman (EDO), the Sultanate's state-owned oil and gas company, successfully concluded its second issuance of a Sukuk, an Islamic finance instrument. This offering, denominated in US dollars, raised $750 million for the company.

EDO's Sukuk offering proved highly attractive to investors, attracting over 115 orders from a geographically diverse group. Participation came from Europe, the United Kingdom, the United States, the Middle East, and Asia, reflecting strong global confidence in both EDO and Oman's economic stability.

The Sukuk has a seven-year term and offers a profit rate of 5. 662%. This issuance marks a significant achievement for EDO, as it secured funding at a lower profit rate compared to its previous Sukuk issued in September 2023. According to EDO's Chief Financial Officer, Sultan Al Mamari, this translates to cost savings for both the company and the nation.

The robust investor demand for EDO's Sukuk offering is a testament to the company's financial health and its role as a key driver of Oman's energy sector. The proceeds from the issuance will be used to support EDO's ongoing development projects and contribute to the country's economic growth.

This successful Sukuk issuance by EDO further strengthens Oman's position as a prominent player in the global Islamic finance market. The Sultanate has a long history of Islamic finance and has actively promoted its development within the country. The strong performance of EDO's Sukuk offerings demonstrates the growing appeal of Islamic finance instruments to international investors, solidifying Oman's role as a vital hub for this sector.

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