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Saudi Telecom Company (STC) has priced a dual-tranche sukuk totaling $2 billion under RegS/144A format, following robust demand from global investors.
Combined order books came in at more than $5.4 billion on strong investor appetite.
The $1.25 billion 10-year senior unsecured sukuk was priced at par with a fixed coupon of 5.083%, equivalent to a spread of T+90 basis points over US Treasuries.
Initial price thoughts were set at T+125bps, tightened to guidance at +95bps before final pricing at +90bps. The tranche drew an order book exceeding $3.3 billion, peaking at $4.2 billion (excluding joint lead managers).
The $750 million 5-year tranche carries a coupon of 4.489%, priced at par with a spread of T+75bps.
IPTs were set in the T+115bps area, tightened to guidance at +85bps before final pricing. The tranche attracted orders of more than $2.1 billion, peaking at $3.4 billion (excluding JLM).
BNP Paribas, Citibank, Dubai Islamic Bank (DIB), Emirates NBD Capital, HSBC, Islamic Corporation for the Development of the Private Sector (ICD), Kuwait Finance House Capital (KFH), Mashreq Bank, National Bank of Greece (NBG), SNB Capital, and Standard Chartered Bank are joint lead managers.
Both sukuk will be listed on the London Stock Exchange’s International Securities Market (ISM).
(Writing by Brinda Darasha; editing by Seban Scaria)
