Saudi Telecom Company the leading provider of telecommunications services in the Kingdom of Saudi Arabia, has successfully issued Sukuk in the domestic Saudi Arabian debt capital market.,. The raising of SAR 2 billion via a 10-year Sukuk offering marks STC's debut to the debt capital markets, and represents the first issuance under the Company's newly established SAR 5 billion Private Placement Sukuk programme. The strong and diverse demand, which reflects the strong market reception for STC's credit story, allowed the Company to price the sukuk issuance at a competitive spread of 70bps over 3-months SIBOR. The order book was oversubscribed by 2 times, and key investor segments including government funds, banks, fund managers, and insurance companies participated in the Sukuk. STC's sukuk issuance marks an important milestone in the Company's strategy of diversifying its sources of funding and increasing the tenor of its borrowings.. His Excellency His Excellency Eng. Abdulaziz A. Alsugair Chairman of The Board, Delegated Member commented; "We are very pleased with the results of this transaction and view it as a key milestone for STC and for the Saudi Arabian debt capital markets at large. The remarkable demand seen from all types of Saudi Arabian investors is a testimony to the quality of STC's credit and the continued growth of the Saudi Arabian debt capital market." J.P. Morgan Saudi Arabia Limited, NCB Capital Company and Standard Chartered Capital Saudi Arabia acted as Joint Arrangers on the Sukuk Programme and Joint Managers on the inaugural Sukuk issuance.

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