DUBAI: Saudi Telecom Co (STC), the Gulf's biggest telecommunications operator by market value, has picked three banks to manage its debut Islamic bond offer, banking sources aware of the transaction told Reuters on Wednesday.

It has chosen JP Morgan Chase, Standard Chartered and the investment banking arm of Saudi Arabia's National Commercial Bank to arrange the transaction, three sources said, speaking on condition of anonymity as the information isn't public. STC declined to comment.

The sources said it was currently unclear if STC was looking to complete a sukuk issue in the local Saudi market, or if the sukuk would be US dollar-denominated and sold to international investors.