Energy Oman Launches OMR 50 Million Sukuk Series 2 at 5% Profit Rate

Energy Oman, legally Energy Development Oman SAOC, has announced its second Omani rial sukuk offering, Sukuk Series 2, with an initial size of OMR 50 million — about US$130 million — and an option to raise a further OMR 25 million through a greenshoe option. The Shari’a-compliant sukuk carries a fixed profit rate of 5% per year, paid quarterly, over a five-year term. Subscription for the first investor category opens on 4 November 2026.

Key Points:

• Initial issue size: OMR 50 million, with a greenshoe option of up to OMR 25 million more.
• Fixed profit rate: 5% per year, payable quarterly, over a 5-year tenor.
• Nominal value: OMR 1 per certificate.
• Category I subscription: 4–12 November 2026, by competitive bidding through physical application forms.
• Category II subscription: 18–30 November 2026, through the e-IPO channels of the collecting banks, after the cut-off yield and fixed price are announced on or around 16 November 2026.
• Minimum subscription: 1,000 certificates for Category I investors, 100 for Category II investors.
• Expected listing: Muscat Stock Exchange, on or around 10 December 2026, after allocation and settlement.
• Structure: Ijarah (leasing) and Wakala (agency), approved by the Shari’a Supervisory Board of Muzn Islamic Banking, National Bank of Oman.
• Joint issue managers: National Bank of Oman and Bank Nizwa.

How the offering is structured

The sukuk’s cash flows are supported by Energy Oman’s energy assets in Oman, and the instrument follows the Islamic principles of leasing and agency rather than interest-bearing borrowing. That structure was approved by the Shari’a Supervisory Board of Muzn Islamic Banking, part of the National Bank of Oman. National Bank of Oman and Bank Nizwa are acting as joint issue managers, and ten collecting banks — including Ahli Bank, Bank Dhofar, Bank Nizwa, National Bank of Oman, Oman Arab Bank and Sohar International, together with their Islamic banking units — will handle subscriptions.

How subscription works

The offering is split into two categories. Category I investors subscribe between 4 and 12 November 2026 through a competitive bidding process, using physical application forms and a yield reference table. Once that phase closes, the cut-off yield and the fixed price for Category II applicants are expected to be announced on or around 16 November 2026. Category II subscription then runs from 18 to 30 November 2026 through the electronic IPO channels of the collecting banks. All applicants need an investor account with Muscat Clearing and Depository, and the minimum subscription is 1,000 certificates for Category I and 100 for Category II.

Why this offering matters for Islamic finance readers

A second domestic sukuk from a major Omani energy company, priced at a fixed 5% over five years, is a useful marker for Gulf Islamic capital markets: it shows continued demand for Shari’a-compliant, asset-backed instruments from both institutional and retail channels. It also sits in a busy regional week for sukuk, alongside recent UAE and Pakistan programmes, as governments and government-linked companies across the region keep turning to sukuk for long-term funding. A fixed profit rate on one offering does not guarantee the outcome of any other offering, and market prices after listing can move.

This article is for information only and is not investment advice. Capital is not guaranteed. Read the prospectus, including its risk factors, before subscribing, and take advice from a qualified professional and a trusted Islamic scholar where needed.

Related reading: what is Sukuk, the UAE Treasury Sukuk auction, and the National Grid Company Sukuk plan.

Frequently Asked Questions

Sources: Zawya; OERLive; ABC GCC News