Oman's OQGN Plans Sukuk to Gain Flexible Access to Intl. Debt Capital Markets

OQ Gas Networks (OQGN) has established a US$1bn sukuk issuance programme to provide the company with flexible access to international debt capital markets, the company said in a disclosure to the Muscat Stock Exchange. OQGN said no sukuk has been issued and no financing has been raised under the programme at this stage.

Any future sukuk issuance under the programme may be listed on the London Stock Exchange’s International Securities Market and will be subject to OQGN’s funding requirements, prevailing market conditions and relevant approvals.

The company said the establishment of the programme does not, in itself, result in any change to its approved capital expenditure or business plan.

The programme provides OQGN with a framework to access debt capital markets when required, while leaving the timing and size of any potential issuance subject to market conditions and the company’s financing needs.

Global credit rating agencies S&P Global and Fitch have both recently assigned OQGN a BBB- rating with a stable outlook.

According to S&P, OQGN’s credit profile benefits from its low-risk utility operations. The company has a 50-year concession agreement with the government of Oman for gas transportation, running until 2070. Under the concession, OQGN is the monopoly provider of gas transmission services and an essential service provider.

S&P said OQGN will continue to invest in further network expansion to meet rising demand for natural gas in Oman. To expand its network in support of Oman’s medium-term gas production and demand targets, the rating agency projects that OQGN’s annual capex in 2026 and 2027 will be RO45mn-RO60mn.