Saudi Arabia’s stc Group has received the ‘Sukuk and Bond Deal of the Year 2025’ award at the Saudi Capital Market Awards, recognizing its landmark $2 billion sukuk issuance that attracted strong international investor demand and reinforced confidence in the Kingdom’s expanding debt capital markets.
The award recognizes stc’s dual-tranche US dollar-denominated sukuk issuance, comprising a $750 million five-year tranche with a 4.489% annual yield and a $1.25 billion 10-year tranche with a 5.083% annual yield. The sukuk were listed on the International Securities Market of the London Stock Exchange in January 2025.
The transaction highlights growing global investor confidence in Saudi Arabia’s telecommunications sector and the broader digital economy, while supporting stc’s long-term investment strategy in digital infrastructure and next-generation technologies.
Strong Global Demand Reflects Investor Confidence
The sukuk issuance generated exceptional interest from international investors, attracting more than $8 billion in orders from over 300 investors, making the offering more than four times oversubscribed.
The strong response reflects confidence in stc’s financial strength, resilient operating model and long-term growth strategy, as well as increasing international appetite for high-quality Gulf corporate debt.
Oversubscribed issuances also demonstrate the growing maturity and attractiveness of Saudi Arabia’s capital markets to global institutional investors.
Financing Digital Infrastructure and Long-Term Growth
According to stc, the proceeds support its strategy of strengthening its position as a regional digital enabler through continued investment in telecommunications infrastructure, digital platforms and emerging technologies.
The company continues to expand beyond traditional connectivity into areas including cloud computing, artificial intelligence, data centers, cybersecurity and digital services, while supporting major national development projects across the Kingdom.
Long-term capital raising through sukuk provides financial flexibility to fund these strategic investments while maintaining sustainable growth.
Saudi Capital Markets Continue to Deepen
The recognition comes as Saudi Arabia continues to strengthen its debt capital market under the Financial Sector Development Program, one of the key pillars of Vision 2030.
An increasingly active sukuk and bond market is providing companies with diversified financing options while attracting international investors seeking exposure to the Kingdom’s rapidly growing economy.
Large corporate issuances from companies such as stc also contribute to improving market liquidity, broadening the investor base and reinforcing Saudi Arabia’s position as a leading regional financial center.
Digital Leaders Increasingly Access Capital Markets
Telecommunications and technology companies are becoming major participants in debt capital markets as they finance large-scale investments in fiber networks, 5G, AI infrastructure and hyperscale data centers.
Access to long-term financing enables operators to accelerate digital transformation while supporting national connectivity goals and expanding enterprise digital services.
As demand for AI-ready infrastructure grows, capital markets will play an increasingly important role in funding next-generation digital ecosystems.
Why This Matters
Large-scale capital market transactions provide telecommunications companies with the financial resources needed to invest in digital infrastructure, AI and cloud services while supporting long-term innovation. Strong investor demand also signals confidence in the sector’s growth prospects and the broader digital economy.
For stc Group, winning the Sukuk and Bond Deal of the Year 2025 award reinforces the success of its $2 billion sukuk issuance and supports its strategy of investing in digital infrastructure and technology-led growth. For Saudi Arabia, the recognition highlights the continued development of the Kingdom’s capital markets and their role in financing Vision 2030’s digital transformation ambitions.
Editor’s Note
The future of digital infrastructure depends not only on technological innovation but also on access to long-term capital. Telecommunications operators are increasingly turning to debt markets to finance investments in 5G, AI, cloud platforms and hyperscale infrastructure that require significant upfront funding. stc’s award-winning sukuk issuance illustrates how capital markets are becoming strategic enablers of digital transformation. As Saudi Arabia accelerates investments under Vision 2030, the ability to attract global institutional capital will remain a critical factor in sustaining the Kingdom’s ambitions to become a regional leader in digital infrastructure and advanced technologies.
