Saudi Arabia's stc Group has been honored with the Sukuk and Bond Deal of the Year 2025 award at the Saudi Capital Market Awards, recognizing its pivotal role in advancing the Kingdom's debt capital market. The accolade follows the group's successful $2 billion dual-tranche sukuk issuance, which drew overwhelming investor demand.
Award Recognition for Landmark Sukuk Issuance
The award was announced during the Saudi Capital Market Awards ceremony, which celebrates outstanding market participants whose contributions align with the Financial Sector Development Program's objectives. stc Group's sukuk issuance comprised two tranches: a $750 million five-year tranche with an annual yield of 4.489 percent, and a $1.25 billion 10-year tranche with an annual yield of 5.083 percent. Both tranches were admitted to trading on the International Securities Market of the London Stock Exchange on January 15.
Exceptional Investor Demand
The issuance attracted substantial interest from a broad and diversified base of global investors, with total orders exceeding $8 billion from more than 300 investors. This represented an oversubscription of more than four times the offered amount, underscoring strong market confidence in stc Group's creditworthiness and strategic direction.
Strategic Implications for stc Group
The successful issuance reflects investor confidence in the group's resilient business model and strategy to strengthen its position as a leading regional digital enabler. According to stc Group, the capital raised will be used to capitalize on promising opportunities in infrastructure, enable mega-projects, focus on achieving sustainable growth based on operational efficiency, and maximize shareholder value. The award highlights the group's significant contribution to the development of Saudi Arabia's capital market.
Broader Market Impact
The Saudi Capital Market Awards are part of efforts to recognize entities that help advance the Kingdom's capital market in line with the Financial Sector Development Program, a key pillar of Saudi Vision 2030. stc Group's award underscores the growing importance of sukuk as a financing tool in the region and the increasing integration of Saudi issuers with international capital markets.
