stc Plans US Dollar-Denominated International Sukuk Issuance Under $5 Billion Financing Program

Riyadh | EcoPulse24

Saudi Telecom Company (stc) has announced its intention to issue US dollar-denominated international sukuk as part of its approved program with a total value of up to $5 billion. The initiative targets supporting the company’s general business purposes and enhancing its financial flexibility.

The company clarified that the program launch is based on a Board of Directors’ approval dated September 30, 2025. The sukuk will be issued through a special purpose vehicle established outside Saudi Arabia. The offering may be conducted in one or multiple tranches or as a series of issuances, targeting qualified investors both within the Kingdom and internationally.

In preparation, stc has appointed several global and regional financial institutions as joint lead managers, including BNP Paribas, Citibank, Dubai Islamic Bank, Emirates NBD, HSBC, Kuwait Finance House, Mashreq Bank, Standard Chartered, and AlAhli Financial, among others.

The company stated that the value and terms of the issuance will be determined later based on prevailing market conditions. The offering is subject to regulatory approvals and will comply with applicable laws and regulations. stc emphasized that this announcement does not constitute an invitation or offer to subscribe, and any investment will be subject to the terms and conditions of the international sukuk.

Stock Performance:
The announcement coincided with stc’s share trading at SAR 42.36, down 0.84%, with a trading value of approximately SAR 55.35 million and a volume exceeding 1.3 million shares.

Analysis:
stc’s move to tap international debt markets reflects the ongoing reliance of leading Saudi companies on diverse, long-term financing tools amid a shifting global financial environment, aiming to balance capital structure without straining operational liquidity.