Energy Development Oman (Energy Oman) has officially commenced the subscription process for its second Omani rial-denominated Sukuk, marking a significant step in the company’s capital market activity. This initial offering, targeting institutional investors, seeks to raise RO 50 million with a flexible provision to expand the total size by an additional RO 25 million depending on demand.

Structure and Investment Terms

The financial instrument is structured upon the Islamic financing principles of Ijarah and Wakala, having received formal approval from the Sharia Supervisory Board of Muzn Islamic Banking at the National Bank of Oman. The Sukuk carries a fixed annual profit rate of 5%, which will be distributed to holders on a quarterly basis over the course of its five-year tenor.

Institutional participation is conducted through a competitive bidding process, requiring applicants to maintain an investor account with the Muscat Clearing and Depository. Documentation must be submitted through designated banking institutions, which include a broad network of conventional and Islamic banks such as Bank Nizwa, National Bank of Oman, Ahli Bank, and Sohar International.

Timeline and Market Integration

The current subscription window for institutional bidders remains open until November 12. Following this phase, the market will gain clarity on the final pricing for the second category of applicants, with an official announcement regarding the cut-off yield expected by November 16. This second tier of subscriptions is slated to follow shortly after, running from November 18 through to November 30.

Energy Oman has appointed Bank Nizwa and the National Bank of Oman as joint issue managers to oversee the process, while Oman Investment Bank will serve as the liquidity provider to support market-making activities. Upon the successful completion of allocation and settlement, the Sukuk is expected to debut on the Muscat Stock Exchange by December 10. Chief Financial Officer Sultan al Maamari noted that the offering aims to provide a stable, low-risk investment avenue, though prospective investors are encouraged to thoroughly review the associated prospectus and risk factors prior to committing capital.

Sources

Oman Observer · Business · 2026-11-05