STC Sukuk launches first international Sukuk at $1.25 bln

Saudi Telecom Co’s (STC) subsidiary, STC Sukuk, has issued its first international US dollar-denominated Sukuk program at $1.25 billion, the Saudi-listed firm said in a bourse

The issue consists of 6,250 instruments at $200,000 par each.

The Certificates may be subject to early redemption at the option of STC Sukuk Co. Ltd. and STC upon the occurrence of a tax event. The Certificates 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 certificates, the statement added.

The offered sukuk will be listed at the Irish Stock Exchange plc trading as Euronext Dublin "Euronext Dublin". Certificates may be sold in reliance on Regulation S or Rule 144A under the U.S. Securities Act of 1933, as amended. The company will continue to complete all the necessary procedures to issue the Sukuk and allocate such Sukuk to the investors.

Last month, Saudi Telecom Co. (STC) said that its subsidiary STC Sukuk Co. Ltd. would start offering the first issue of US$ denominated Sukuk under the international Sukuk Program, according to data compiled by Argaam.