Muscat: Energy Development Oman (EDO) has successfully secured a $2.5 billion debt financing transaction, which attracted an overwhelming market response at very competitive rates.
The funding will further support EDO in achieving its key objective of alleviating the Government's Block 6 funding requirements. The Company is also mandated to create growth; enhance efficiencies and governance in Oman’s oil, gas, and new energies sector; and unlock value through diversification and value chain integration.
The deal was oversubscribed by more than 100% which is a testament to investors’ confidence in EDO and Oman’s economy.
EDO Interim CEO Haifa Al Khaifi said: “The creation of EDO and the progress made since its establishment constitute a historic achievement for Oman, and it will serve as a vehicle for accelerated development and value creation. In particular, the successful execution of the syndicated deal is a major milestone for EDO and the country.
“The strong participation from local, regional and international banks is another sign of Oman’s attractiveness for global investors and paves the way for fruitful and sustainable collaboration with international partners”.
EDO was established through Royal Decree (128/2020) following which the Block 6 Oil Concession was transferred (Royal Decree 21/2021) and a new Block 6 Gas Concession was granted (Royal Decree 43/2021). Since then, EDO has made substantial progress in its journey to become Oman’s energy champion and to support the Sultanate’s economic diversification.
With a vision “to be a world-class partner for growth, driving a sustainable energy future”, EDO takes inspiration from Oman’s 2040 vision of transitioning to renewables, leveraging and maximising Oman’s world-class development opportunities.