VEON concludes RUB 90 billion (c.USD 1.2 billion) bank financing

Rhea-AI Summary

VEON Ltd. has successfully secured bank financing of RUB 90 billion (approximately USD 1.215 billion) through its subsidiary VEON Finance Ireland. The financing involves two bilateral loan facilities of RUB 45 billion each from Sberbank and Alfa Bank, with terms spanning five years. The fixed and floating rate tranches aim to enhance VEON's capital structure and support corporate purposes, including intercompany loans to PJSC VimpelCom. CFO Serkan Okandan highlights this move as part of ongoing efforts to extend VEON’s debt maturity.

Positive

• Successfully secured RUB 90 billion in bank financing.
• Financing improves VEON's capital structure.
• Funds will support general corporate purposes and intercompany loans.

Negative

• None.

AMSTERDAM, Dec. 24, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that VEON Finance Ireland Designated Activity Company., a subsidiary of VEON Ltd. (NASDAQ, Euronext Amsterdam: VEON) has successfully concluded bank financing of RUB 90 billion (approximately USD 1,215 million^[1]) guaranteed by VEON Holdings B.V..

VEON concluded two bilateral loan facilities of RUB 45bn each with Sberbank and Alfa Bank.

• The RUB 45 billion Alfa Bank facility has a 5-year amortising tenor with a RUB 30 billion fixed rate tranche and a RUB 15 billion floating rate tranche
• The RUB 45 billion Sberbank facility has a 5-year amortising tenor and is fully floating

The proceeds from both facilities will be used for general corporate purposes, including the financing of intercompany loans to PJSC VimpelCom.

Serkan Okandan, VEON's Chief Financial Officer, said: "These new facilities show the continued good progress in our efforts to improve the Group's capital structure and extend the maturity of our debt portfolio."

^[1]Based on USD/RUB=73.92

Disclaimer

This release contains "forward-looking statements", as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, expectations regarding VEON's financial position and capital structure. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.

About VEON

VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services.  For more information visit: www.veon.com.

Contact Information
VEON
Investor Relations
Nik Kershaw
ir@veon.com 
+31 20 79 77 200 

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SOURCE VEON Ltd

FAQ

What is the amount of financing secured by VEON?

VEON secured financing of RUB 90 billion (approximately USD 1.215 billion).

Which banks provided the financing to VEON?

The financing was provided by Sberbank and Alfa Bank.

What will the proceeds from VEON's financing be used for?

The proceeds will be used for general corporate purposes, including financing intercompany loans to PJSC VimpelCom.

What is the significance of VEON's financing announcement on December 24, 2021?

The financing demonstrates VEON's efforts to improve its capital structure and extend the maturity of its debt portfolio.