The Islamic Corporation for the Development of the Private Sector (ICD) has participated as Joint Lead Manager in Saudi Telecom Company’s successful USD 2.0 billion dual-tranche Sukuk issuance, marking a first-ever collaboration between ICD and Saudi Arabia’s largest telecommunications company.
The transaction attracted more than USD 8 billion in orders from over 300 global investors, representing over four times oversubscription, underlining strong international appetite for high-quality, Shariah-compliant debt and confidence in STC’s credit profile and strategic direction.
Competitive Pricing Reflects Market Confidence in STC
The Sukuk was issued in two tranches: a 5-year tranche and a 10-year tranche. The 5-year tranche attracted USD 2.1 billion in demand, while the 10-year tranche received USD 3.3 billion, reflecting oversubscription levels of 2.8x and 2.6x, respectively.
Final pricing was set at US Treasury plus 75 basis points for the 5-year tranche and US Treasury plus 90 basis points for the 10-year tranche—levels that underscore investor confidence in STC’s balance sheet strength, operational performance, and long-term growth outlook.
The issuance marks STC’s first return to the international sukuk market since its USD 1.25 billion deal in 2019, signalling renewed engagement with global Islamic capital markets.
Funding Digital Infrastructure and Vision 2030 Priorities
The dual-tranche structure provides STC with long-term funding flexibility to advance its strategic priorities in digital infrastructure, connectivity, and technology-led services.
As a cornerstone of Saudi Arabia’s telecommunications ecosystem, STC plays a central role in enabling the Kingdom’s digital transformation agenda under Saudi Vision 2030.
The strong reception and competitive pricing highlight market recognition of STC’s execution capability, scale, and alignment with national development objectives, particularly in areas such as digital inclusion, cloud services, and next-generation connectivity.
ICD Strengthens Islamic Capital Markets
For ICD, the transaction reinforces its mandate to develop Islamic capital markets and support private-sector-led growth across member countries.
By backing STC’s sukuk issuance, ICD is supporting investment in critical digital infrastructure while promoting Shariah-compliant financing structures that attract global institutional capital.
ICD’s participation also reflects its broader strategy of partnering with systemically important corporates whose activities enhance financial inclusion, economic participation, and regional integration.
Global Appetite for Shariah-Compliant Assets
The success of the offering highlights the depth and maturity of the global sukuk market, particularly for issuers with strong fundamentals and strategic relevance.
The scale and diversity of investor participation underline growing international demand for Shariah-compliant instruments linked to infrastructure, technology, and long-term development themes.
As Islamic finance continues to integrate more closely with global capital markets, transactions such as STC’s sukuk demonstrate how high-quality issuers can access deep pools of liquidity while aligning financing with long-term national and developmental priorities.
