Best sukuk deal – Middle East: Energy Development Oman’s $1 billion sukuk

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Best sukuk deal – Middle East: Energy Development Oman’s $1 billion sukuk

Trustee: EDO Sukuk

Obligor: EDO Gas

Guarantor: Energy Development Oman

Size: $1 billion

Structure: Al-ijara/murabaha

Tenor: 10 years

Banks: JPMorgan and Standard Chartered (global coordinators, joint lead managers and bookrunners); Abu Dhabi Commercial Bank, Arab Bank, Bank Muscat, Dubai Islamic Bank, First Abu Dhabi Bank, KFH Capital, National Bank of Oman, Mashreq Bank (joint lead managers and bookrunners)

Date: September 2023

 

Institutional investors are almost always engaged by a good credit story and rarity value, so when Oman’s national energy champion emerged with its debut and the country’s first international debt issue since 2021, it was sure to draw strong interest and demand.

That is exactly what Energy Development Oman (EDO), the state-owned oil and gas company, saw in September last year, when it issued a $1 billion 10-year sukuk, marking its inaugural transaction on the international capital markets, as well as the first Omani government-related entity (GRE) to sell a dollar-denominated deal for two years.

The transaction attracted strong demand from investors in Europe and the UK, the Middle East and North Africa, the US and Asia, pushing the orderbook to a peak at over $5.5

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