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Saudi Arabia : SAUDI TELECOM issues debut Islamic bond worth $533 mln

June 13, 2014

Saudi Telecom Company has announced the issuing of a debut Islamic bond worth 2 billion Saudi riyals ($533.3 million) following getting good demand.

Various regional firms are competing to take up the debt market ahead of an expected slowdown in local investor activity deeper in the summer months and during Ramadan in July.

According to STC, the Islamic bond or sukuk is for 10-year. It brings a floating profit rate of 70 basis points over three-month SIBOR. It was presented under its newly established 5 billion Saudi riyals private placement sukuk program.

The company stated This debut Sukuk issuance of STC was almost two times oversubscribed. The investor base captured was diverse comprising a mix of government investors, banks, asset managers and insurance companies. The order book was open from June 1 to 3.

J.P. Morgan Saudi Arabia, NCB Capital Co. and Standard Chartered Capital Saudi Arabia were combined arrangers of the sukuk program as well as joint managers on the debut issue.

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Source: TendersInfo (India)

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