STC to borrow USD14 billion for international expansion, says report

16 Aug 2007

Saudi Telecom Company (STC) could borrow up to USD14 billion to pursue its goal of generating 10% of its revenues from international markets by 2010, according to a regional investors report by Bahrain-based Securities and Investment Company (SICO). According to the report, STC’s overall domestic market share is set to decline to 52%, but SICO forecasts strong customer growth prospects for the company, which it expects will post a 7.4% compounded growth in earnings in the near future. It found that STC’s attempts to expand outside the Kingdom seem to be paying off, and estimates the firm could raise as much as USD14 billion of debt to pursue international acquisitions by 2010. STC’s recent USD3 billion purchase of a 25% stake in Malaysia’s Maxis Communications provides it with access to over 14 million customers in Malaysia, India and Indonesia.

Saudi Arabia, Saudi Telecom Company (stc)