Oman's state energy firm offers 50 million rial sukuk at 5%

Summary

• Energy Development Oman is issuing five-year sukuk worth 50 million rials at 5% annually.
• The company can upsize the deal by 25 million rials to 75 million maximum.
• Institutions and retail investors get separate tranches, with Muscat listing planned for December.

The latest

Energy Development Oman is raising 50 million rials through five-year sukuk paying a fixed 5% profit rate quarterly, the state energy company announced, with an option to add 25 million rials if demand allows. It is the company's second sukuk issuance. The paper is priced at 1 rial per unit and is set to list on the Muscat Stock Exchange.

Details

• The structure: The issuance uses an ijara and wakala structure approved by the sharia supervisory board of Muzn Islamic Banking, the company said. Each sukuk carries a nominal value of 1 rial, and the 5% annual profit rate is distributed on a quarterly basis across the five-year tenor.
• The upsize option: Energy Development Oman set the base size at 50 million rials with a greenshoe-style option to increase the offering by a further 25 million rials, taking the maximum to 75 million. The company did not say what level of demand would trigger the increase.
• Institutional tranche: The first tranche is reserved for institutional investors and runs from 4 to 12 November 2026, according to the company. The minimum subscription for institutions is 1,000 sukuk, keeping the entry ticket at 1,000 rials at the stated nominal value.
• Retail tranche: A second tranche opens to individual investors from 18 to 30 November 2026, with a minimum subscription of 100 sukuk. The two-stage design gives retail buyers a separate window rather than placing them in competition with institutional bidders in a single book.
• Listing date: The sukuk are scheduled to be listed on the Muscat Stock Exchange on or around 10 December 2026, adding a tradable fixed-income instrument to a bourse long dominated by equities. The company did not disclose how much of the issue it expects to remain in retail hands after listing.
• Deal arrangers: The National Bank of Oman and Bank Nizwa are acting as joint lead managers on the issuance. Trowers and Hamlins is the legal adviser, and Oman Investment Bank has been appointed liquidity provider to support secondary-market trading once the paper lists.
• Collecting banks: Several local lenders are taking part in gathering subscriptions, including Sohar International, Bank Dhofar, Oman Arab Bank and Ahli Bank, the company said. The distribution network spreads the retail tranche across conventional and Islamic banking counters nationwide.
• The issuer: Energy Development Oman is the state-owned company that holds the government's interests in the country's largest oil and gas concession and channels energy revenue into the treasury. This is its second sukuk sale, following an earlier issuance the company referenced without detailing its size.

Between the lines

The split tranches and the 100-sukuk retail minimum point to a deliberate effort to widen the domestic investor base, not merely to raise funds. Appointing a dedicated liquidity provider ahead of the December listing signals the issuer wants the paper to trade actively rather than sit in buy-and-hold portfolios until maturity.

What's next

The institutional book opens 4 November 2026 and closes 12 November, followed by the retail window from 18 to 30 November. Whether the company exercises the 25 million rial upsize option will be the first read on demand before the 10 December listing.

Source: Alroya (Oman)