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Saudi Telecom Company (STC) intends to issue international Trust Certificates (sukuk) denominated in US dollars under its $5 billion international sukuk issuance programme, which will be set up on January 6, 2026, following board approval obtained on September 30, 2025.
The issuance will be conducted through an offshore special purpose vehicle (SPV). The sukuk may be issued in one or more tranches or series and offered to eligible investors in Saudi Arabia and internationally, subject to market conditions.
STC has appointed 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 as joint lead managers for the proposed offering.
The amount and terms of the sukuk will be determined based on market conditions. Proceeds will be used for general corporate purposes.
STC, which is 62% owned by the Public Investment Fund, in 2025 signed a $8.7 billion 15-year contract with the Saudi government to build, operate, and provide telecommunications infrastructure services.
Fitch Ratings last month affirmed STC at A+ with stable outlook. The ratings agency said the company is one of the lowest leveraged telecoms rated by them.
(Writing by Brinda Darasha; editing by Seban Scaria)
