VEON successfully enters into a USD 1.25 billion multi-currency revolving credit facility agreement
VEON Ltd. has secured a new multi-currency revolving credit facility (RCF) worth USD 1.25 billion for VEON Holdings B.V. This agreement replaces a prior facility established in 2017 and includes an initial term of three years with options for two one-year extensions. The RCF will enable drawdowns in either USD or euros.
VEON's CFO noted improvements in capital structure, with a 150bp decrease in average funding costs, reducing annual interest expenses by roughly USD 100 million. This new facility enhances liquidity and financial flexibility for the Group.
- Secured a new multi-currency RCF of USD 1.25 billion.
- Average cost of funding decreased by 150bp.
- Annual interest expenses reduced by approximately USD 100 million.
- New facility improves the Group's liquidity profile and financial flexibility.
- None.
AMSTERDAM, March 10, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that it has successfully entered into a new multi-currency revolving credit facility agreement (the "RCF") of USD 1.25 billion for VEON Holdings B.V. ("VEON Holdings"). The RCF will replace the existing revolving credit facility signed in 2017. The RCF has an initial tenor of three years, with VEON Holdings having the right to request two one-year extensions, subject to lender consent. International banks from Asia, Europe and the US have committed to the RCF. VEON Holdings will have the option to make each drawdown in either U.S. dollars or euro.
Serkan Okandan, VEON's CFO, said: "The progress we have made in improving our capital structure since 2017 and over the last 12 months, where we have seen our average cost of funding decrease by 150bp reducing our annual interest expenses by around USD 100 million and the average tenor extended by 13 months to 3.5 years, has allowed us to reduce the size as well as improve the pricing when compared to our previous RCF facility. This new RCF supports the Group's liquidity profile and is expected to provide the Group with greater financial flexibility".
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 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
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SOURCE VEON Ltd
FAQ
What is the new credit facility amount announced by VEON?
How long is the initial term of VEON's new credit facility?
What improvements did VEON report regarding its funding costs?
What currencies can VEON draw down from the new facility?
