VEON liquidity update

Rhea-AI Summary

On May 25, 2022, VEON reported a cash and deposit increase to approximately USD 2.4 billion, up from USD 1.9 billion at the end of March 2022. The company holds USD 1.8 billion in cash and deposits at its Amsterdam headquarters, bolstered by a successful drawdown of USD 610 million from its Revolving Credit Facility (RCF). VEON has USD 973 million outstanding under the RCF.

Despite not receiving USD 82 million from Intesa Sanpaolo Bank, discussions continue regarding funding obligations. VEON emphasizes a prudent liquidity position amid macroeconomic uncertainty.

Positive

• Increased total cash and deposits to USD 2.4 billion, demonstrating a strong liquidity position.
• Successfully drew down USD 610 million from the RCF, enhancing cash reserves.

Negative

• Awaiting USD 82 million from Intesa Sanpaolo Bank, which could delay financial stability.
• Outstanding USD 973 million under the RCF raises concerns about debt levels.

AMSTERDAM, May 25, 2022 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and digital services, today announces that its total cash and deposits have increased to approximately USD 2.4 billion, including USD 1.8 billion equivalent of USD and EUR denominated cash and deposits held by its headquarters ("HQ") in Amsterdam, as at 23 May 2022 (vs. USD 1.9 billion and USD 1.3 billion, respectively, as at 31 March 2022). In addition to the USD and EUR denominated cash, VEON HQ has a limited amount of RUB denominated cash to cover its upcoming coupon payments under its RUB notes.

VEON Group CFO Serkan Okandan said: "We have successfully drawn down nearly all of the USD 692 million that was available under our Revolving Credit Facility ("RCF") as of 31 March 2022. After issuing a utilization request in April 2022 for the full remaining balance, we have received USD 610 million. This has increased VEON Group's HQ-level cash position to USD 1.8 billion, enabling us to maintain a prudent liquidity position in this period of macroeconomic uncertainty."

The remaining USD 82 million from Intesa Sanpaolo Bank S.p.A., Amsterdam Branch has not yet been received as this bank has not yet made their participation in the loan available pursuant to the utilization request. We are still in discussions with this bank about their funding obligations pursuant to the RCF agreement.

VEON currently has USD 973 million outstanding under the RCF, net of the USD 24 million with A.O. Raiffeisen (Raiffeisen Russia). Raiffeisen Russia will be repaid at the end of May due to the cancellation of its commitments in compliance with new Russian regulatory requirements.

The HQ-level 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.

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 liquidity position and sources of financing. 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. Furthermore, elements of this release contain or may contain, "inside information" as defined under the Market Abuse Regulation (EU) No. 596/2014.

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-301554869.html

SOURCE VEON Ltd

FAQ

What is VEON's current cash position as of May 2022?

VEON's total cash and deposits have increased to approximately USD 2.4 billion as of May 23, 2022.

How much did VEON draw from its Revolving Credit Facility?

VEON successfully drew down USD 610 million from its Revolving Credit Facility in April 2022.

What challenges does VEON face regarding bank funding?

VEON is still in discussions with Intesa Sanpaolo Bank about their obligations to provide USD 82 million under the RCF.

How much debt does VEON currently have outstanding under the RCF?

VEON currently has USD 973 million outstanding under the Revolving Credit Facility.