VEON's Subsidiary Jazz Pakistan Secures 10-year PKR 50 billion (USD 320 million) Syndicated Facility

Rhea-AI Summary

VEON Ltd. announced that its Pakistani subsidiary, Jazz, has secured a PKR 50 billion (approximately USD 320 million) syndicated credit facility, marking a significant milestone in local telecom financing. This 10-year facility will fund 4G network rollouts and technology upgrades. Jazz has over 69 million subscribers and recently received an upgraded long-term rating of 'AA' from the Pakistan Credit Rating Agency. CFO Serkan Okandan emphasized the importance of local borrowing to strengthen the company's capital structure.

Positive

• Secured PKR 50 billion (USD 320 million) credit facility.
• Facility marks a significant milestone for local telecom financing.
• Over 69 million subscribers and 28 million 4G users.
• Upgraded long-term rating to 'AA' from Pakistan Credit Rating Agency.
• USD 462 million invested in 4G infrastructure over two years.

Negative

• None.

AMSTERDAM, June 24, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that its operating company in Pakistan, Jazz, has secured a PKR 50 billion (approximately USD 320 million¹) syndicated credit facility from a banking consortium led by Habib Bank Limited (HBL). This 10-year facility will be used to finance the company's ongoing 4G network rollouts and technology upgrades, as well as to address upcoming maturities.

The facility is the first of its kind to be extended to the local telecoms sector in terms of amount and tenor. The facility is fully subscribed by HBL, the consortium's investment agent and mandated lead arranger, along with United Bank Limited, National Bank of Pakistan, MCB Bank, Bank Alfalah, Allied Bank Limited, Askari Bank Limited, Bank of Punjab, Meezan Bank Limited and Faysal Bank Limited, which are also acting as the mandated lead arrangers and advisors on this deal.

As the country's leading digital services provider, Jazz has over 69 million subscribers and more than 28 million 4G users nationwide. Over a period of two years, the company has invested USD 462 million in 4G infrastructure. The Pakistan Credit Rating Agency Limited has recently upgraded Jazz's long-term rating to 'AA' with a stable outlook, underscoring the company's strong financial foundations.

Serkan Okandan, VEON's Chief Financial Officer, said: "This facility is a further milestone in our ongoing efforts to improve the Group's capital structure by increasing local borrowing in order to match our local currency revenues while extending the maturity of our debt portfolio."

¹Based on USD/PKR = 157

About VEON

VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and digital services serving nine countries, which together are home to 9% of the world's population. Our companies are transforming lifestyles through technology-driven services that empower opportunity in some of the world's fastest-growing emerging markets.

For more information, visit: https://www.veon.com

Disclaimer

This press 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 date or to reflect the occurrence of unanticipated events.

VEON Contacts
Communications & Investor Relations
Nik Kershawir@veon.com 
Tel: +31 20 79 77 200

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SOURCE VEON Ltd

FAQ

What is the significance of VEON's credit facility announcement?

VEON's subsidiary, Jazz, secured a PKR 50 billion credit facility to enhance its 4G network and technology, indicating strong local financing support.

How many subscribers does Jazz have?

Jazz has over 69 million subscribers, with more than 28 million using 4G services.

What will the credit facility be used for?

The PKR 50 billion credit facility will finance ongoing 4G network rollouts and technology upgrades.

What is the credit rating of Jazz?

The Pakistan Credit Rating Agency recently upgraded Jazz's long-term rating to 'AA' with a stable outlook.

How much has Jazz invested in 4G infrastructure?

Jazz has invested USD 462 million in 4G infrastructure over the past two years.