RIYADH: Saudi Telecom Company has announced its intention to establish an international Sukuk Program in a total amount not exceeding USD 5.0 billion and issue Sukuk either directly or through an offshore special purpose vehicle to be established for this purpose.[the_ad id=”31605″]The Sukuk issuance will be made in one or more tranches and through one issue or a series of issues by way of a private placement or a public offering, a notice issued to Tadawul noted.
The Board of Directors of the Saudi Telecom Company has approved to raise its recommendation to the extraordinary general assembly (which will be scheduled at a later date) to approve the establishment of the program and issue Sukuk thereunder, pursuant to the Company’s bylaws.
The value of any issuance under the program will be determined based on the market conditions.
The aim of the Sukuk program is to support the execution of the company’s strategy and future plans. Further, it will help the company to diversify the sources of funding and benefit from the features of international debt capital market in terms of liquidity, competitive pricing and diversification of investor base.
In addition, having an international presence in debt capital market through this program will enhance Saudi Telecom Company’s financial standing.
Saudi Telecom Company posted a net profit of SAR 10.78 billion for the year ended December 31, 2018, which is 6.9 percent higher than the profit of SAR 9.95 billion in the previous year. The earnings per share (EPS) for 2018 clocked in at SAR 5.39 as against EPS of SAR 5.01 in 2017.