The Saudi Telecom Company (STC) has priced a dual-tranche sukuk with a total value of $2 billion of RegS/144A format, after the strong demand from global investors. The combined order books had topped more than $5.4 billion on good investor appetite.
The $1.25 billion 10-year senior unsecured sukuk was issued at par with a fixed coupon of 5.083 percent, equivalent to a spread of T+90 basis points over US Treasuries.
The first price considerations were pegged at T+125bps, tightened to guidance at +95bps before final pricing at +90bps. The tranche attracted an order book in excess of $3.3 billion, and a high of 4.2 billion, excluding joint lead managers.
The 5-year tranche of $750 million has a coupon of 4.489 percent priced at par with a spread of T+75bps. However, the IPTs were intended in the T+115bps area, tightened to guidance at +85bps before final pricing. The tranche received orders worth over $2.1 billion, with a high of $3.4 billion, excluding JLM.
Joint lead managers are BNP Paribas, Citibank, Dubai Islamic Bank (DIB), Emirates NBD Capital, HSBC, Islamic Corporation for the Development of the Private Sector (ICD), Kuwait Finance House Capital (KFH), Mashreq Bank, National Bank of Greece (NBG), SNB Capital, and Standard Chartered Bank.
The two sukuk will be traded on the London Stock Exchange in the International Securities Market (ISM).
