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STC to Establish USD5 Billion Sukuk Program

STC to Establish USD5 Billion Sukuk Program

Friday, 22 March, 2019 - 13:45
Riyadh - Asharq Al-Awsat
Saudi Telecom Company (STC) announced its intention to establish an international sukuk program that would include issues of up to five billion American dollars, to be made directly through STC or through an entity of a special purpose to be found outside Saudi Arabia for this aim.

Sukuks will be issued over one stage or throughout several stages, through public or private issuance.

The value of each issuance will be determined further based on the market's conditions, knowing that the purpose of the issuance is commercial, STC added.

The issuance has to acquire the approval of relevant official authorities and extraordinary general assembly of the company.

The issuance will conform with all regulations and lists in this context.

STC added that the international sukuk program aims to serve the company’s strategy and future plans and to diversify funding sources as well as to benefit from privileges of international sukuks.

These privileges include global liquidity, competitive prices, diversity in investors, elevating financial ability of the company and reinforcing presence in the international debt market.

This announcement coincides with a time when the grid updates are expected to represent a key element for telecommunication companies in the region especially with the appearance of the 5G networks.

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