The Islamic Corporation for the Development of the Private Sector (ICD) Participates in Saudi Telecom Company's USD 2.0 Billion Dual Tranche Sukuk Issuance

The transaction's competitive pricing underscores market recognition of STC's operational excellence, digital transformation agenda, and alignment with Saudi Vision 2030
 

• ICD serves as Joint Lead Manager for STC's $2.0 billion dual-tranche Sukuk.
• First-time collaboration between ICD and Saudi Arabia's largest telecommunications company.
• Transaction achieves 4x oversubscription with $8 billion in total orders from 300+ global investors.
• Competitive pricing reflects strong market confidence in STC's credit quality and strategic vision.
• Issuance supports digital infrastructure expansion and financial inclusion across the region.

The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-PS.org), the private sector arm of the Islamic Development Bank (IsDB) Group, has participated as Joint Lead Manager in Saudi Telecom Company's (STC) successful $2.0 billion dual-tranche Sukuk issuance.

This landmark transaction represents STC's first return to the international sukuk market since its $1.25 billion issuance in 2019, demonstrating continued investor confidence in both STC and Shariah-compliant capital markets in the Kingdom of Saudi Arabia.

The issuance achieved exceptional market reception, attracting total orders exceeding USD 8 billion across both tranches, representing more than 4x oversubscription. The 5-year tranche garnered $2.1 billion in orders (2.8x oversubscribed), while the 10-year tranche received $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, reflecting robust investor appetite and STC's strong credit standing.

The dual-tranche structure provides STC with flexible, long-term financing to advance its strategic initiatives in the telecommunications sector. As one of the region's leading telecommunications providers, STC plays a vital role in expanding digital infrastructure and connectivity across Saudi Arabia and beyond. The transaction's competitive pricing underscores market recognition of STC's operational excellence, digital transformation agenda, and alignment with Saudi Vision 2030.

ICD's participation reflects its ongoing commitment to developing Islamic capital markets across member countries. Supporting institutions like STC, whose initiatives expand digital access and promote financial inclusion, aligns directly with ICD's developmental mandate and mission to empower sustainable private sector growth. By backing a transaction that strengthens digital infrastructure and broadens connectivity, ICD contributes to greater financial inclusion and economic participation throughout the region.

The successful completion of this sukuk issuance, with participation from more than 300 international investors, underscores the robust global appetite for high-quality Shariah-compliant investment opportunities in strategic sectors. It also highlights the increasing international recognition of STC's strategic importance and credit strength in advancing regional digital transformation.

Distributed by APO Group on behalf of Islamic Corporation for the Development of the Private Sector (ICD).