VEON’s Jazz Secures Pakistan’s Largest Long-Term Private Sector Syndicated Credit Facility of up to PKR 75 billion

Rhea-AI Summary

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.

Positive

• 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

Negative

• None.

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 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. Headquartered in Amsterdam, VEON is listed on Nasdaq and Euronext. For more information visit: https://www.veon.com.

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

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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

 

Attachment

• VEON’s Jazz Secures Pakistan’s Largest Long-Term Private Sector Syndicated Credit Facility of up to PKR 75 billion

FAQ

What is the value of the credit facility secured by Jazz, VEON's subsidiary in Pakistan?

Jazz has secured a credit facility of up to PKR 75 billion (approximately USD 270 million), which is the largest long-term private sector syndicated credit facility in Pakistan.

How long is the term of the credit facility secured by VEON's Jazz in Pakistan?

The credit facility secured by Jazz is a 10-year financing arrangement.

Which bank led the consortium for VEON's Jazz credit facility in Pakistan?

The banking consortium was led by The Bank of Punjab, along with other prominent financial institutions.

What will VEON's Jazz use the credit facility for in Pakistan?

Jazz will use the credit facility to power its growth ambitions, expand and enhance digital infrastructure, and invest in areas such as cloud, software, and financial services as it transitions from a telco to a ServiceCo.