Saudi Telecom Company (STC) is set to launch a new wave of international sukuk, denominated in US dollars, under a $5 billion issuance framework approved by its board last September.
The offering will be routed through an offshore special purpose vehicle (SPV) and could come in multiple tranches, targeting investors both in Saudi Arabia and abroad, depending on market appetite.
A consortium of major banks—including BNP Paribas, Citibank, HSBC, Emirates NBD Capital, Dubai Islamic Bank, Standard Chartered, and others—will manage the offering. Terms and the final issuance size will hinge on prevailing market conditions, with proceeds earmarked for general corporate purposes.
STC, 62% owned by the Public Investment Fund, recently secured an $8.7 billion, 15-year contract to develop and operate the kingdom’s telecom infrastructure. Fitch Ratings maintains STC’s A+ rating with a stable outlook, highlighting its position as one of the least leveraged telecom players on its books.
