Market Overview
Oman entered the green bond market with its inaugural sovereign green bond in 2023, raising OMR 500 million with 3.5x oversubscription. The issuance established a Green Finance Framework aligned with ICMA principles, paving the way for subsequent government and corporate green debt instruments.
The green bond market supports Oman’s Net Zero 2050 commitment by channelling investment toward renewable energy, clean transport, and sustainable water management projects.
Investment Case
Green bonds offer investors Oman sovereign credit exposure with the additional benefit of use-of-proceeds transparency and ESG portfolio alignment. Pricing has tightened relative to conventional Eurobonds, reflecting growing greenium dynamics.
| Metric | Value |
|---|---|
| Total green bonds issued | OMR 1.8 billion |
| Average coupon | 5.0-5.8% |
| Oversubscription ratio | 3-4x |
| Framework rating | Medium Green (Cicero) |
| Eligible project categories | 6 |
| Reporting frequency | Annual |
Risk Factors
Greenwashing risk requires careful framework analysis. Secondary market liquidity is developing. Eligible project pipeline must be sufficient to absorb proceeds within committed timelines.
Entry Strategy
Primary market subscription through lead-managed syndication provides optimal pricing. Secondary market access through regional bond dealers. Green bond fund inclusion criteria are met by Oman’s framework alignment with international standards.
Vision 2040 Alignment
Green bonds directly finance Vision 2040 environmental sustainability objectives, with proceeds allocated to renewable energy, energy efficiency, and water security projects identified in the national development plan.