Muscat: Energy Development Oman (EDO) has succeeded in securing international and local financing worth OMR385 million and has issued its first local sukuks (bonds) worth OMR50 million.
This supports the company’s future development plans and sustainable growth in the long run. This achievement reflects the rapid development in the finance abilities of the government companies in the Sultanate of Oman.
This represents EDO’s model of efficient financial management and its ability to access local and international financing markets on competitive terms.
It also reflects the company’s success in restructuring various financing tools and reaffirms the position of the company in attracting capitals as well as investors, which enhances the strength of the national economy and keeps abreast to the government’s efforts in further cementing financial sustainability and diversification of financial tools required for supporting this vital sectors.
Mazin bin Rashid Al Lamki, Chief Executive Officer of Energy Development Oman (EDO) said that these financing options reflect the confidence local and international financial establishments accord to the creditworthiness of EDO and sustainability of the company’s long term strategy.
He further said that the company has completed a new credit finance operation for five years after increasing the value of the credit finance to $1 billion due to the increasing demand from the side of the investors, wherein the total coverage exceeded $1.5 billion.
The revenues of the loan of OMR288.8 million ($750 million) are planned to be used in the company’s investments and repayment of OMR96 million ($250 million) of the current loan, estimated at OMR769 million ($2 billion) due in 2029, which contributes to improvement of the finance and capital restructuring.
He further added that the company has re-financed facilities in (OMR) wherein it refinanced the specific term loan at OMR375 million at the same amount and extended the maturity of the loan to 2028 with two options for annual extension. The company has also increased the renewable credit facility from OMR150 million to OMR200 million with the maturity term up to 2028, he added.
Sultan bin Ali Al Mamari, Chief Financial Officer (CFO) of Energy Development Oman (EDO) said that the completion of the finance operations reflects the confidence the local banks and international finance corporations vest on the company.
He said that the company seeks creation of varied finance sources including borrowing from international banks and issuance of sukuks and finance through the local and international banks as to enhance fiscal sustainability and econ0omic balance through investment at concession are No. (6), which is one of the key concession areas in terms production of oil and gas as it produces over 60% of the total production of the Sultanate of Oman.
He said that the improvement of the Sultanate’s credit rating index has paved the way for the company to reach a big sector of the banks and finance corporations and to directly negotiate the reduction in the cost of the loans.
He further added that the company’s share at the concession area No. (6 ) amounted to approximately OMR1.5 billion , which is the cost of oil and gas projects.