VEON’s Jazz Secures Pakistan’s Largest Long-Term Private Sector Syndicated Credit Facility of up to PKR 75 billion
VEON announces that its digital operator in Pakistan, Jazz, has secured the country's largest long-term private sector syndicated credit facility of up to PKR 75 billion (approximately USD 270 million). This 10-year financing arrangement will support Jazz's growth ambitions as Pakistan's leading provider of 4G connectivity and digital services.
The banking consortium, led by The Bank of Punjab, includes prominent financial institutions such as Habib Bank, Bank Alfalah, and Meezan Bank. This credit facility will accelerate the deployment of cutting-edge digital infrastructure in Pakistan, focusing on services important for realizing the potential of its young population and vibrant business landscape.
The agreement signifies trust and support for Jazz as the leading digital growth engine of the country, enabling its transition from a telco to a ServiceCo with investments in cloud, software, and financial services.
VEON annuncia che il suo operatore digitale in Pakistan, Jazz, ha ottenuto la più grande linea di credito sindacata del settore privato a lungo termine del paese, fino a 75 miliardi di PKR (circa 270 milioni di USD). Questo accordo di finanziamento di 10 anni sosterrà le ambizioni di crescita di Jazz come fornitore leader di connettività 4G e servizi digitali in Pakistan.
Il consorzio bancario, guidato dalla Bank of Punjab, include istituzioni finanziarie di spicco come Habib Bank, Bank Alfalah e Meezan Bank. Questa linea di credito accelererà il dispiegamento di infrastrutture digitali all'avanguardia in Pakistan, concentrandosi su servizi importanti per realizzare il potenziale della sua giovane popolazione e del vivace panorama imprenditoriale.
L'accordo rappresenta fiducia e sostegno per Jazz come principale motore di crescita digitale del paese, consentendo la sua transizione da telco a ServiceCo con investimenti in cloud, software e servizi finanziari.
VEON anuncia que su operador digital en Pakistán, Jazz, ha obtenido la mayor línea de crédito sindicada del sector privado a largo plazo del país, de hasta 75 mil millones de PKR (aproximadamente 270 millones de USD). Este acuerdo de financiamiento a 10 años apoyará las ambiciones de crecimiento de Jazz como el proveedor líder de conectividad 4G y servicios digitales en Pakistán.
El consorcio bancario, liderado por el Banco de Punjab, incluye instituciones financieras destacadas como Habib Bank, Bank Alfalah y Meezan Bank. Esta línea de crédito acelerará el despliegue de infraestructura digital de vanguardia en Pakistán, enfocándose en servicios importantes para realizar el potencial de su joven población y su vibrante panorama empresarial.
El acuerdo significa confianza y apoyo a Jazz como el principal motor de crecimiento digital del país, permitiendo su transición de telco a ServiceCo con inversiones en la nube, software y servicios financieros.
VEON은 파키스탄의 디지털 운영자 Jazz가 국내 최대 장기 민간 부문 공동 신용시설인 750억 PKR (약 2억 7천만 USD)을 확보했다고 발표했습니다. 이 10년 금융 계약은 파키스탄의 4G 연결과 디지털 서비스의 선도 공급자로서 Jazz의 성장 목표를 지원합니다.
Bank of Punjab이 이끄는 은행 컨소시엄에는 Habib Bank, Bank Alfalah 및 Meezan Bank와 같은 저명한 금융 기관이 포함되어 있습니다. 이 신용 시설은 파키스탄에서 최첨단 디지털 인프라를 배치하는 속도를 높이고, 젊은 인구와 활발한 사업 환경의 잠재력을 실현하는 중요한 서비스에 집중할 것입니다.
이 계약은 Jazz가 나라의 주요 디지털 성장 엔진으로서 신뢰와 지원을 나타내며, 클라우드, 소프트웨어 및 금융 서비스에 대한 투자로 통신업체에서 서비스 제공업체로의 전환을 가능하게 합니다.
VEON annonce que son opérateur numérique au Pakistan, Jazz, a obtenu la plus grande facilité de crédit syndiqué du secteur privé à long terme du pays, pouvant atteindre 75 milliards de PKR (environ 270 millions USD). Cet accord de financement de 10 ans soutiendra les ambitions de croissance de Jazz en tant que fournisseur leader de connectivité 4G et de services numériques au Pakistan.
Le consortium bancaire, dirigé par la Bank of Punjab, comprend des institutions financières de premier plan telles que Habib Bank, Bank Alfalah et Meezan Bank. Cette facilité de crédit accélérera le déploiement d'infrastructures numériques de pointe au Pakistan, en se concentrant sur des services importants pour réaliser le potentiel de sa jeune population et de son paysage commercial dynamique.
L'accord signifie la confiance et le soutien envers Jazz en tant que moteur de croissance numérique du pays, permettant sa transition d'un opérateur télécom à une entreprise de services avec des investissements dans le cloud, les logiciels et les services financiers.
VEON gibt bekannt, dass sein digitaler Betreiber in Pakistan, Jazz, die größte langfristige private syndizierte Kreditfazilität des Landes in Höhe von bis zu 75 Milliarden PKR (ungefähr 270 Millionen USD) gesichert hat. Diese 10-jährige Finanzierungsvereinbarung wird die Wachstumsambitionen von Jazz unterstützen, der als führender Anbieter von 4G-Konnektivität und digitalen Diensten in Pakistan gilt.
Das Bankenkonsortium, das von der Bank of Punjab geleitet wird, umfasst namhafte Finanzinstitute wie Habib Bank, Bank Alfalah und Meezan Bank. Diese Kreditfazilität wird den Ausbau modernster digitaler Infrastruktur in Pakistan beschleunigen und sich auf wichtige Dienstleistungen konzentrieren, die das Potenzial der jungen Bevölkerung und der dynamischen Geschäftswelt des Landes verwirklichen.
Die Vereinbarung steht für Vertrauen und Unterstützung für Jazz als treibende Kraft des digitalen Wachstums im Land und ermöglicht den Übergang von einem Telekommunikationsunternehmen zu einem Serviceanbieter mit Investitionen in Cloud, Software und Finanzdienstleistungen.
- Secured largest long-term private sector syndicated credit facility in Pakistan (PKR 75 billion)
- 10-year financing arrangement to support growth and digital infrastructure expansion
- Transition from telco to ServiceCo with investments in cloud, software, and financial services
- Strong support from banking consortium led by The Bank of Punjab
- None.
Insights
The securing of a PKR 75 billion (USD 270 million) syndicated credit facility by Jazz is a significant financial milestone. This long-term financing arrangement will support the company’s strategic initiatives in expanding digital infrastructure. From a financial perspective, this infusion of capital provides Jazz with the liquidity needed to invest in high-growth areas like cloud services and financial services, potentially enhancing their revenue streams and market presence. For investors, this can be seen as a positive indicator of Jazz’s growth potential and financial health, as securing such a substantial credit facility demonstrates strong confidence from leading financial institutions. It also suggests that Jazz is well-positioned to capitalize on the growing demand for digital services in Pakistan, which could lead to increased profitability and shareholder value in the medium to long term.
This credit facility, being the largest long-term private sector syndicated deal in Pakistan, highlights Jazz’s dominant market position and growth ambitions. For retail investors, this can be interpreted as a bullish signal for VEON stock. The strategic focus on enhancing digital infrastructure aims to capture a larger market share in a country with a rapidly growing population and increasing internet penetration. This can lead to sustainable long-term growth. Additionally, the involvement of multiple prominent banks signifies a diversified risk profile and strong backing for Jazz’s initiatives. The emphasis on transitioning to a ServiceCo, investing in sunrise sectors and focusing on innovative digital solutions aligns with global market trends, making Jazz a proactive player in the industry.
From a technology perspective, the substantial credit facility aimed at enhancing digital infrastructure is critical for Jazz's evolution. The focus on expanding 4G connectivity and digital services will likely accelerate technological advancements and service offerings. For investors, this indicates that Jazz is not only committed to maintaining its current technological edge but also looking to future-proof its operations against emerging trends. The planned investments in cloud and financial services are particularly noteworthy as these sectors offer high growth potential and could diversify Jazz’s revenue streams. This diversification can reduce dependency on traditional telecom revenues and open up new business opportunities, thereby potentially increasing the company's valuation.
Amsterdam and Karachi, 22 July 2024: VEON Ltd. (NASDAQ, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, announces that Jazz, its digital operator in Pakistan, has secured the country’s largest long-term private sector syndicated credit facility of up to PKR 75 billion (c. USD 270 million). This 10-year financing arrangement will power Jazz’s growth ambitions as the country’s leading provider of 4G connectivity and digital services to millions of consumers and enterprises.
The banking consortium was led by The Bank of Punjab, along with the following other prominent financial institutions that act as mandated lead advisors and arrangers: Habib Bank, Bank Alfalah, Meezan Bank, MCB Bank, Allied Bank, Askari Bank, Habib Metropolitan Bank, Soneri Bank, Bank Islami Pakistan and MCB Islamic Bank. The signing of the credit facility, originally entered into in May 20241, was marked with a ceremony held in Karachi in the presence of VEON Group CEO Kaan Terzioglu, Jazz CEO Aamir Ibrahim, and the Presidents, Chairs and Chief Executives of the participating banks.
"This credit facility will be a game-changer for Pakistan's digital landscape helping us accelerate the deployment of cutting-edge digital infrastructure, focusing on services that Pakistan need to realize the potential of its young and dynamic population and vibrant business landscape. I would like to thank our distinguished partners in the banking consortium for seeing the immense growth potential that Jazz’s value proposition entails for Pakistan. I would also like to congratulate the Jazz team for the successful delivery of services to millions of Pakistanis that has fuelled the robust growth of our Pakistan operations. This agreement is a further sign of the trust and the support that Jazz enjoys as the leading digital growth engine of the country,” said Kaan Terzioglu, Group CEO of VEON.
“This landmark syndicated credit facility will help expand and enhance our digital infrastructure across Pakistan, as we transition from a telco to a ServiceCo and invest in sunrise industries like cloud, software, financial services in addition to consumer connectivity. I would like to thank The Bank of Punjab and our esteemed banking consortium partners for their unwavering support and confidence in Jazz's vision. This financing arrangement reaffirms our commitment to driving Pakistan's digital transformation as our focus remains on delivering innovative solutions that empower individuals and businesses, fostering socio-economic growth," said Aamir Ibrahim, CEO of Jazz.
“Leading this landmark transaction in the telecom sector exemplifies our strategic focus on digital transformation in Pakistan. Our partnership with Jazz underscores The Bank dedication to advancing technological progress and supporting the growth of the telecom industry. This deal is a testament to our commitment to driving innovation and fostering economic development in the country,” said Zafar Masud, President and CEO of The Bank of Punjab.
About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
About Jazz
Jazz is Pakistan’s leading digital operator with over 71 million subscribers. Jazz offers the most extensive portfolio of digital services including JazzCash, Pakistan’s leading fintech; Garaj, the largest onshore cloud and cybersecurity platform; and Tamasha, Pakistan’s largest homegrown OTT video streaming and entertainment platform.
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, VEON’s digital, commercial and investment plans. 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. There can be no assurance that the initiatives referred to above will be successful.
Contact Information
Hande Asik
Group Director of Communications
pr@veon.com
Julian Tanner
TUVA Partners
Julian.tanner@tuvapartners.com
1 PKR 65 billion of the facility was already secured in May 2024 as disclosed in the “Unaudited Interim Condensed Consolidated Financial Statements VEON Ltd. as of and for the three-month period ended March 31, 2024” available on www.veon.com
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