Riyadh – Mubasher: The Saudi Telecom Company (STC) will offer the first issue of its US dollar-denominated sukuk on Friday, 26 April.

The size of the issue, set to be closed on 30 June, will be specified subject to the market’s condition and demand, the state-run telecoms provider said in a statement to the Saudi Stock Exchange (Tadawul) on Thursday.

HSBC Bank plc, J.P Morgan Securities plc, Standard Chartered bank, Samba Capital & Investment Management Company, First Abu Dhabi Bank, and Kuwait Finance House (KFH) Capital Investment Company have been hired to lead manage the issue.

The minimum value of subscription amounts to EUR 100,000, while it will be $200,000 in case of issuing the Islamic bonds in the US, the statement added.

STC Sukuk Company Limited and STC may redeem the sukuk upon the occurrence of a tax event.

Additionally, STC’s extraordinary general meeting (EGM) approved to distribute SAR 4 billion at SAR 2 per share as extra cash dividends for the full fiscal year 2018, the company said in a separated statement. 

Dividends will be distributed on 16 May, the kingdom’s biggest telecommunications operator added. 

The eligibility of dividends shall be for the shareholders owning shares by the end of the second day following the OGM date.

STC's profits levelled up 6.26% to SAR 2.75 billion in Q1-19, from SAR 2.59 billion during Q1-18.