Saudi Telecom Co launches first US$ dominated sukuk

Saudi Telecom Co. (STC) said that its subsidiary STC Sukuk Co. Ltd. will start offering the first issue of US$ denominated sukuk under the international sukuk program.

The final value of the first issuance, listing price, par value, maturity and return will be subject to market conditions and company’s requirement, the company said in a bourse statement.

The issuance period will begin on April 26, 2019 and will last until June 30, 2019.

The offering will be available to institutional investors (qualified investors in the jurisdictions in which the offering will be made in accordance with the rules and regulations of such jurisdictions).

The company has named HSBC Bank plc, J.P Morgan Securities plc, Standard Chartered bank, Samba Capital & Investment Management Co., First Abu Dhabi Bank, and KFH Capital Investment Co. as lead managers for the offering.

Certificates will have a minimum denomination of EUR 100,000 (or its equivalent in other currencies as at the date of issue). In the case of any certificates to be sold in the United States to QIBs, the minimum specified denomination shall be $200,000 (or its equivalent in other currencies), the statement added.

The sukuk may be subject to early redemption at the option of STC Sukuk Co. and STC upon the occurrence of a tax event. They shall also be redeemed early upon the occurrence of a total loss event or a dissolution event.

Subject to market conditions, a change of control put option, trustee call option and/or holder put option may also apply to any offer of sukuk, the company added.