Saudi Telecom issues $533m debut sukuk

Issue by the Gulf's largest telecommunications operator was almost two times oversubscribed
By Reuters
Tue 10 Jun 2014 12:37 PM

Saudi Telecom Co (STC), the Gulf's largest telecommunications operator by market value, said on Tuesday it had completed a SAR2bn riyal ($533 million), 10-year debut sukuk issue.

The issue, which was almost two times oversubscribed, carried a floating profit rate of 70 basis points over the three-month Saudi interbank offered rate, currently at 0.9525 percent.

Government investors, banks, asset managers and insurance companies bought the sukuk, the statement added.

JP Morgan Chase, Standard Chartered and the investment banking arm of Saudi Arabia's National Commercial Bank managed the issue, which was part of a SAR5bn sukuk programme established last month.

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