Saudi Telecom Issues SAR2bn, 10-Year Debut Sukuk

The issue was almost two times oversubscribed.

Saudi Telecom Co (STC), the Gulf’s largest telecommunications operator by market value, said on Tuesday it had completed a SAR2 billion ($533 million), 10-year debut sukuk issue.

The issue, which was almost two times oversubscribed, carried a floating profit rate of 70 basis points over the three-month Saudi interbank offered rate, currently at 0.9525 per cent.

Government investors, banks, asset managers and insurance companies bought the sukuk, the statement added.

JP Morgan Chase, Standard Chartered and the investment banking arm of Saudi Arabia’s National Commercial Bank managed the issue, which was part of a SAR5 billion sukuk programme established last month.