Saudi Telecom Company (STC), a leading digital enabler in the region, announced its intention to issue international sukuk denominated in US dollars. This announcement is a key part of its ambitious program to establish international sukuk with a total value of up to $5 billion, a program officially launched today, reflecting the company's strong financial position and its focus on diversifying funding sources.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that this step is based on a Board of Directors resolution issued on April 8, 1447 AH (September 30, 2025). The company indicated that the issuance process will be conducted through the establishment of a special purpose vehicle (SPV) outside the Kingdom of Saudi Arabia specifically for this purpose, thus providing greater flexibility in managing the offering in global markets.
Details of the offering and participating financial institutions
These sukuk are planned to be issued in either a single tranche or multiple tranches, or through a series of successive issuances, and will be offered to qualified investors both within and outside the Kingdom of Saudi Arabia. To ensure the success of this strategic offering, STC has appointed a strong banking consortium comprising leading global and regional financial institutions as joint lead managers: BNP Paribas, Citibank, Dubai Islamic Bank, Emirates NBD, HSBC, the Islamic Corporation for the Development of the Private Sector, Kuwait Finance House, Mashreq Bank, National Bank of Greece, Al Ahli Capital, and Standard Chartered Bank.
Economic and strategic dimensions of the event
This offering is of particular importance in light of the major economic transformations taking place in the Kingdom of Saudi Arabia within Vision 2030. STC is a key pillar in the Kingdom’s digital infrastructure, and these funds will contribute to supporting the company’s expansion plans in the areas of emerging technologies, data centers, and 5G networks, in addition to enhancing its investments in the communications and information technology sector at the local and regional levels.
The recourse of major Saudi companies like STC to international debt markets reflects the growing confidence of foreign investors in the strength of the Saudi economy and leading national companies. Issuing dollar-denominated sukuk helps diversify the company's funding portfolio, reduce risk, and capitalize on available global liquidity, thereby enhancing its ability to achieve its overall business objectives with high financial efficiency.
The company concluded its statement by noting that the final value and terms of the issuance of the bonds will be determined based on the prevailing market conditions at the time of the offering, stressing that the process is subject to the approval of the competent regulatory authorities and will be carried out in accordance with the relevant applicable regulations and rules.
