EDO secures $1bn international loan to support long-term growth

19/10/2025 03:44 AST

Energy Development Oman (EDO) has completed an attractive $1bn international loan alongside successfully refinancing its Omani rial loan facilities. Together, the transactions extend EDO's debt maturity profile, reduce financing costs, and diversify its lender base, strengthening the company's position to support future growth.

The five-year $1bn term loan was upsized from the initial $750mn following strong investor demand, with aggregate commitments exceeding $1.5bn. More than half of the final allocations came from outside the GCC, led by major Asian banks, highlighting EDO's ability to access diverse pools of international liquidity.

Proceeds will be used for general corporate purposes ($750mn) and to prepay a portion of EDO's existing $2bn facility due in 2029 ($250mn), contributing to a smoother debt maturity profile.

In a statement, Mazin al Lamki, CEO of EDO, said, "These transactions have met our primary goals of cost-efficiency and investor diversification, while strengthening our banking partnerships. They put EDO in a strong position to finance further growth and demonstrate the confidence that both local and international banks place in our credit standing and long-term strategy."

Mashreq and GIB acted as joint initial mandated lead arrangers (MLAs), underwriters and bookrunners, leading the syndication process, while Sohar International Bank joined as the sole Omani MLA.

AlSalt al Kharusi, Country Head, Mashreq Oman, said, "At Mashreq, our role goes beyond capital - it's about bridging global liquidity with national ambition. By leading this $1bn syndication alongside world-class institutions, we have reinforced Oman's ability to attract large-scale international capital on competitive terms. This transaction reflects our strong conviction in the sultanate's growth trajectory and our commitment to enabling the critical sectors that will help cement Oman's position as a regional hub for energy and infrastructure finance."

Shortly prior, EDO refinanced its two Omani ryal loan facilities. The RO375mn term loan was refinanced at the same amount, extending its maturity to 2028 with two annual extension options at EDO's discretion. The RO150mn revolving credit facility (RCF) was increased to RO200mn and also extended to 2028. Bank Muscat acted as lead arranger and facility agent for both financings, supported by sizeable commitments from Sohar International Bank for the term loan, and Bank Dhofar for the RCF.

Sultan al Mamari, Chief Finacial Officer of EDO, said, "The strong support from Omani banks in our domestic refinancing, together with the breadth of international participation in the USD transaction, reflects market confidence in EDO's strategy. These outcomes give us greater financial flexibility, a stronger maturity profile, and a more diversified lender base, supporting both current operations and our future growth."

With reference to the Omani riyal loan facilities, Ahmed al Balushi, Deputy Chief Executive Officer - Banking at Bank Muscat, said, "Bank Muscat, as the largest financial institution in Oman, is proud to be the lead arranger and facility agent for both facilities and appreciates the strong partnership with EDO".

The breadth of investor participation across domestic and international banks reflects the confidence in EDO's credit and in Oman's energy sector. By securing attractive financing in a competitive global market, EDO demonstrates its resilience and sets a clear direction for how leading Omani credits can attract international capital with credibility and scale.

Energy Development Oman was established by Royal Decree in December 2020, becoming Oman's national energy company. Tasked with leading the nation's energy sector, its core objective is to ensure efficient, secure, and cost-effective energy for national prosperity in line with Vision 2040's economic growth goals.

EDO's mandate is to optimise the commercial potential of Block 6 where it holds a 60% stake in the oil concession and 100% ownership of the gas concession. A key enabler in Oman's energy transition journey, EDO aims to balance the reliance on traditional hydrocarbons with renewable energy, including solar and wind.

Muscat Daily