Saudi Telecom Company (STC) has returned to the international sukuk market with a $2 billion dual-tranche issuance, attracting strong global investor interest. The successful deal highlights the growing strength of Shariah-compliant capital markets and investors’ confidence in Saudi Arabia’s digital transformation agenda under Vision 2030.
The issuance drew more than $8 billion in orders from over 300 international investors, making it more than four times oversubscribed. The Islamic Corporation for the Development of the Private Sector (ICD) acted as a joint lead manager. This was STC’s first international sukuk issuance since 2019, reflecting a broader trend of Saudi issuers accessing global markets to fund Vision 2030-aligned projects.
The sukuk was structured in two tranches with five-year and ten-year maturities, providing STC with long-term funding flexibility. The five-year tranche attracted demand of $2.1 billion, while the ten-year tranche received $3.3 billion in orders. Final pricing was set at 75 basis points over US Treasuries for the five-year tranche and 90 basis points over Treasuries for the ten-year tranche, indicating strong market confidence in STC’s credit quality.
For investors, the transaction offered exposure to a high-quality corporate issuer operating in the Gulf’s largest economy. As Saudi Arabia’s leading telecommunications company, STC plays a key role in expanding digital infrastructure, connectivity, and technology-enabled services across the Kingdom, in line with Vision 2030’s goals of economic diversification and digital inclusion.
The tight pricing achieved on the sukuk reflects confidence in STC’s operational performance and long-term strategy. In recent years, the company has expanded beyond traditional telecommunications into cloud computing, data centres, cybersecurity, and digital platforms. Proceeds from the sukuk are expected to support continued investment in infrastructure and innovation.
ICD’s involvement in the transaction underscores its mandate to strengthen Islamic capital markets and support private sector development across member countries of the Islamic Development Bank Group. By supporting a deal linked to digital infrastructure, ICD aims to promote sustainable growth and financial inclusion.
The transaction also demonstrates the increasing international appeal of the sukuk market, which is attracting a broader base of global investors seeking diversification and Shariah-compliant exposure to long-term growth opportunities.
Saudi Arabia remains one of the most active issuers in Islamic finance, using sukuk alongside conventional bonds to fund strategic projects. The success of STC’s issuance reinforces its position as a benchmark corporate issuer and highlights strong investor demand for high-quality sukuk linked to the Kingdom’s Vision 2030 initiatives.