Saudi Telecom plans $5 bln international sukuk program

Saudi Telecom Co. (STC) is planning to establish an international sukuk program with a total amount of up to $5 billion, the company said in a bourse statement on Thursday.

The telecom operator will issue the sukuk hereunder either directly or through an offshore special purpose enterprise to be established for this purpose.

The sukuk issuance will be made in one or more tranches and through one issue or a series of issues by way of a private placement or a public offering.

Each issue’s price will be determined later according to market condition, the statement added.

The sukuk issuance will be subject to the approval of the relevant regulatory authorities and the extraordinary general assembly approval. The issuance will be made in accordance with applicable laws and regulations.

The aim of the sukuk program is to support the execution of the company’s strategy and future plans. It will also help the company to diversify the sources of funding and benefit from the features of international debt capital market in terms of liquidity, competitive pricing and diversification of investors’ base.

“In addition, having an international presence in debt capital market through this program will enhance STC’s financial standing,” the statement said.

The company will announce any other relevant material development to its shareholders in due course.