DUBAI  - State-run Saudi Telecom has started marketing its debut sale of U.S. dollar-denominated sukuk, or Islamic bonds, with an initial price of around 155 basis points over midswaps, a document issued by one of the banks leading the deal showed.

Saudi Arabia's biggest telecommunications operator, rated A1 and A-(minus) by Moody's and S&P, respectively, is expected to issue the paper later on Thursday, according to the document.

The bonds will be of benchmark size, which generally means upwards of $500 million.

HSBC, JPMorgan, Standard Chartered, Samba, First Abu Dhabi Bank, and KFH have been hired to arrange the deal.

 

(Reporting by Davide Barbuscia Editing by Raissa Kasolowsky) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))