STC closes $1.25bn 1st US dollar sukuk issue

STC closes $1.25bn 1st US dollar sukuk issue
The 10-year sukuk carries a return of 3.890%
STC
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Riyadh – Mubasher: The Saudi Telecom Co (STC) announced that its subsidiary, STC Sukuk Company Limited, has completed the offering of its first international US dollar-denominated sukuk worth $1.25 billion (SAR 4.7 billion).

The issue comprises 6,250 sukuk with a par value of $200,000 apiece, according to a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The ten-year sukuk carries a return of 3.890%, the statement added.

The certificates may be early redeemed by STC Sukuk Company Limited and STC in case of a tax event, a total loss event, or dissolution event, STC noted.

STC also revealed that the offered sukuk will be listed on the Irish Stock Exchange (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 statement indicated.

Earlier, STC announced that its subsidiary would begin offering the first issue of US dollar-denominated sukuk on 26 April.