VEON liquidity update

Rhea-AI Summary

VEON Ltd. (NASDAQ: VEON) provided an update on its liquidity position as of February 27, 2022, stating it has approximately USD 2.1 billion in cash and deposits, with USD 1.5 billion held at its Amsterdam headquarters. Additionally, the company has a USD 1.250 billion committed revolving credit facility (RCF), of which USD 430 million has been drawn on February 28 to repay maturing notes. Following this, USD 820 million remains undrawn under the RCF. VEON has no further debt maturities in 2022, and the next maturity is scheduled for February 2023.

Positive

• VEON has a healthy liquidity position with USD 2.1 billion in cash and deposits.
• USD 1.5 billion of cash is held at its HQ, providing strong operational support.
• No additional debt maturities at HQ level during 2022 enhances financial stability.
• The undrawn credit line of USD 820 million under the RCF provides additional financial flexibility.

Negative

• None.

AMSTERDAM, March 2, 2022 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, today provides an update on its current liquidity position.

As at 27 February 2022, VEON had approximately USD 2.1 billion of cash and deposits, including USD 1.5 billion of USD and EUR denominated cash and deposits held at the level of its headquarters ("HQ") in Amsterdam. The HQ cash and deposits are held in bank accounts, money market funds and on-demand deposits at a diversified group of international banks from the European Union, the United States and Japan. 

In addition to the above cash and deposits, VEON has a USD 1.250 billion committed revolving credit facility ("RCF") available to it from a group of diversified lenders headquartered in the United States, Europe and Asia.

VEON has utilized USD 430 million under its RCF on 28 February 2022[1] and used these funds to repay its USD 417 million notes which matured on 1 March 2022, and to pay the accrued interest on these notes. Following this utilization, USD 820 million remains undrawn under the RCF.

Following this repayment, VEON has no additional debt maturities at its HQ level during 2022. The first HQ maturity in 2023 is the USD 529 millon 5.95% VEON Holdings' notes maturing in February 2023.

Serkan Okandan, VEON's Chief Financial Officer, said: "The USD 1.5 billion HQ cash and deposit balance and USD 0.8 billion undrawn credit line under  the RCF  will allow us to maintain a prudent liquidity position in these times of macroeconomic uncertainty."

[1] The RCF drawdown may be rolled over until the final maturity of the facility. In February 2022, the original March 2024 maturity was extended to March 2025.

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, liquidity 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 

View original content:https://www.prnewswire.com/news-releases/veon-liquidity-update-301493789.html

SOURCE VEON Ltd

FAQ

What is VEON's current cash position as of February 27, 2022?

VEON has approximately USD 2.1 billion in cash and deposits.

How much of VEON's cash is held at its Amsterdam headquarters?

VEON has USD 1.5 billion of cash and deposits at its Amsterdam HQ.

What is the amount of VEON's revolving credit facility (RCF)?

VEON has a committed revolving credit facility of USD 1.250 billion.

How much of the RCF has VEON utilized as of February 28, 2022?

VEON has utilized USD 430 million under its RCF.

Are there any debt maturities for VEON in 2022?

VEON has no additional debt maturities at HQ level during 2022.