Islamic Corporation for the Development of the Private Sector leads $2 billion Sukuk issuance for Saudi Telecom Company
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The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, has played a key role as Joint Lead Manager in Saudi Telecom Company’s (STC) USD 2.0 billion dual-tranche Sukuk issuance. This marks the first collaboration between ICD and Saudi Arabia’s largest telecommunications provider and STC’s return to the international sukuk market since 2019.
Strong market demand and oversubscription
The transaction attracted overwhelming investor interest, with total orders exceeding USD 8 billion from over 300 global investors, resulting in more than four times oversubscription.
The 5-year tranche was 2.8 times oversubscribed with USD 2.1 billion in orders, while the 10-year tranche received USD 3.3 billion, representing a 2.6 times oversubscription.
Final pricing was set at US Treasury plus 75 basis points for the 5-year tranche and US Treasury plus 90 basis points for the 10-year tranche, reflecting strong market confidence in STC’s credit quality.
The dual-tranche Sukuk offers STC flexible, long-term financing to support its telecommunications initiatives.
As a leading regional provider, STC is instrumental in expanding digital infrastructure and connectivity across Saudi Arabia and the broader region.
The competitive pricing of the issuance underscores recognition of STC’s operational excellence, commitment to digital transformation, and alignment with Saudi Vision 2030.
ICD’s commitment to Islamic capital market development
ICD supports Islamic capital markets and private sector growth in its member countries. By assisting STC with projects that improve digital access and financial inclusion, ICD advances its developmental mandate.
The Sukuk issuance shows a growing global appetite for Shariah-compliant investments in strategic sectors, highlighting STC’s increasing international stature. It also highlights the increasing international recognition of STC’s strategic importance and credit strength in advancing regional digital transformation.