EuroFinance

In complex cross-border financing, outcomes are rarely shaped by strategy statements alone. They are defined by execution discipline, institutional capability, and the ability to anticipate constraints while remaining adaptable as transactions evolve. For Saudi Telecom Company (stc), the past year presented a demanding funding environment marked by compressed timelines, unfamiliar jurisdictions, and first-of-their-kind transaction structures.

Muhammad Salman Akbar, General Manager of capital management at stc, describes recent transactions in which the group was involved as “very complicated,” noting that effective execution is anchored in strong upfront preparation, while “structures must remain capable of evolving as transactions progress and new considerations emerge”.

This balance between discipline and adaptability underpins stc’s approach to capital management and was recognised when the company was highly commended in the risk and resilience category at the EuroFinance Treasury Excellence Awards 2025.

Through strong partnerships with regional and international financial institutions, stc’s capital management team continues to secure resilient, innovative and competitive financing structures that support strategic growth while preserving balance-sheet strength.

A forward-looking funding and risk framework

stc operates within a clearly articulated, policy-driven funding and risk framework that governs leverage, interest-rate exposure, currency alignment, and overall balance-sheet sustainability. Rather than responding to individual transactions in isolation, the framework provides a consistent foundation for funding decisions across the group.

Diversification is a core principle of this approach. stc maintains access to a broad mix of funding sources to avoid concentration risk and preserve flexibility across market cycles. These include debt capital markets, project and infrastructure finance, export credit agency-backed facilities, as well as syndicated and bilateral bank funding. This breadth of access allows the group to remain active across markets while maintaining pricing discipline.

Akbar noted, “effective asset–liability alignment is fundamental to preserving earnings stability and ensuring that market movements do not translate into unintended P&L volatility.”

Setting direction in adviser engagement

External advisers play an important role in complex cross-border financings, but stc’s approach is grounded in a clear principle.

Akbar added, “advisers must be driven, not followed.”

This philosophy reflects the group’s emphasis on internal capability and preparedness. stc’s capital management team brings deep experience across legal, financial, structural, and commercial dimensions, enabling it to set direction, test assumptions, and ensure that advisory input supports the intended transaction outcomes.

Rather than relying on advisers to shape structures or positions, the team uses them to refine execution, validate technical detail, and support delivery. Akbar cautioned, “if advisers start driving the process, you risk losing control of the outcome.”

Managing legal and jurisdictional complexity with consistency

stc’s in-house strength extends to the negotiation of financing documentation. Agreements are tailored to reflect the group’s size, scale, and credit standing, while remaining broadly aligned with recognized loan market standards.

The ability to negotiate bespoke terms is supported by experience, balance-sheet strength, and disciplined project planning. It also enables consistency across transactions and subsidiaries, creating a coherent documentation approach that is easier to manage, monitor, and reference over time.

In multi-jurisdictional settings involving lenders, legal counsel, technical advisers, and internal teams, success depends on navigating differing legal frameworks, market practices, and negotiation cultures with clarity and discipline. Akbar added, “understanding how to engage effectively across jurisdictions is essential to maintaining momentum and alignment in complex cross-border processes.”

Structuring a first-of-its-kind subsea cable financing

These capabilities were put into practice in the financing of the East Mediterranean Corridor subsea cable, which represented a first-of-its-kind structure in subsea infrastructure financing.

Unlike traditional project finance transactions that typically rely on established contractual frameworks and upfront offtake agreements, this transaction was structured as a fully non-recourse project financing under an alternative model. The structure reflected the long-term strategic nature of the asset and the inherent economics of the project, without reliance on sponsor guarantees or other forms of recourse.

Given the precedent-setting nature of the structure, stc’s capital management team played an active role in articulating the commercial and structural rationale, and supporting lenders to understand the Islamic financing structure, associated risk and tax considerations that were required to navigate the credit approval processes across participating institutions.

Managing complex multi-party coordination

Executing a transaction of this nature required more than coordination alone. It demanded a clear execution strategy, strong technical understanding, and the ability to align diverse stakeholders around a coherent structure.

The financing involved a wide range of participants across 12+ jurisdictions, including JV partners, local and international banks, legal advisers, technical and commercial experts.

Maintaining clear ownership of the process was critical. Inputs across disciplines were integrated into a consistent structure rather than addressed in isolation, allowing complexity to be managed without diluting accountability or slowing decision-making. Akbar emphasised, “clarity of ownership becomes increasingly important as transaction complexity increases.”

Cultural considerations also played an important role. Understanding these nuances helped sustain alignment and forward momentum throughout the transaction lifecycle.

Key takeaways for treasury and capital management leaders

stc’s experience highlights several principles relevant to complex, cross-border financings:

• Establish a clear funding and risk framework while retaining flexibility during execution
• Diversify funding sources to preserve resilience across market cycles
• Align funding structures with cash-flow generation and asset lifecycles
• Build strong in-house capabilities to lead advisers and control outcomes
• Apply innovative structuring where traditional frameworks are not suitable
• Navigate legal, cultural, and jurisdictional complexity with preparation and judgment
• Anchor pricing discussions in data, benchmarks, and precedent

Akbar summarised, “effective execution is shaped well before closing, but success ultimately depends on the ability to adapt intelligently as transactions evolve.”