The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, acted as Joint Lead Manager in Saudi Telecom Company’s (STC) successful USD 2 billion dual-tranche Sukuk issuance. This marks STC’s first return to the international Sukuk market since its USD 1.25 billion issuance in 2019, reflecting sustained investor confidence in STC and Shariah-compliant capital markets in Saudi Arabia.
Strong Market Reception
The transaction attracted orders exceeding USD 8 billion, more than four times the initial issuance, demonstrating strong global demand. Specifically:
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5-year tranche: USD 2.1 billion (2.8x oversubscribed)
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10-year tranche: USD 3.3 billion (2.6x oversubscribed)
Final pricing was set at US Treasury + 75 basis points for the 5-year tranche and US Treasury + 90 basis points for the 10-year tranche, underscoring STC’s robust credit profile and investor appetite.
Strategic Impact
The dual-tranche structure equips STC with flexible, long-term financing to advance key initiatives in the telecommunications sector. As a leading provider in the region, STC plays a crucial role in expanding digital infrastructure and connectivity across Saudi Arabia and beyond. The competitive pricing reflects recognition of STC’s operational excellence, digital transformation agenda, and alignment with Saudi Vision 2030.
ICD’s Role and Development Mandate
ICD’s participation highlights its commitment to developing Islamic capital markets and supporting projects that enhance financial inclusion and private sector growth. By backing STC, ICD contributes to broadening digital access, strengthening infrastructure, and promoting sustainable economic participation across member countries.
Global Investor Confidence
More than 300 international investors participated in the issuance, illustrating strong global demand for high-quality Shariah-compliant investment opportunities in strategic sectors. This transaction also reinforces STC’s strategic importance and credit strength, further supporting the regional digital transformation agenda.
