Muscat: Energy Development Oman (EDO) has successfully secured a $2.5 billion debt financing transaction, which managed to draw a massive market response at very competitive rates.
The funding will help EDO meet its primary goal of reducing the Government’s Block 6 funding requirements. The Company is also tasked with driving growth, improving efficiencies and governance in Oman’s oil, gas, and new energy sectors, and unlocking 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.
“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,” said EDO Interim CEO Haifa Al Khaifi. The successful execution of the syndicated agreement, in particular, is a significant achievement for EDO and the country.
“The significant participation of local, regional, and international banks demonstrates Oman’s attractiveness to global investors and paves the way for fruitful and sustainable collaboration with international partners.”
EDO was established by Royal Decree (128/2020), which was followed by the transfer of the Block 6 Oil Concession (Royal Decree 21/2021) and the award of a new Block 6 Gas Concession (Royal Decree 43/2021). Since then, EDO has made significant strides toward becoming Oman’s energy champion and contributing to the Sultanate’s economic diversification.
EDO’s vision is to “be a world-class partner for growth, driving a sustainable energy future,” and it draws inspiration from Oman’s 2040 vision of transitioning to renewables and leveraging and maximising Oman’s world-class development opportunities.