VEON Completes Successful Bond Placement
VEON Ltd. (NASDAQ: VEON), a prominent global digital operator, has announced the successful pricing of a significant private placement involving senior unsecured notes amounting to USD 200 million. This noteworthy development demonstrates VEON's capability to attract institutional investors amidst an evolving financial landscape.
Understanding the Details of the Bond Placement
The private placement, which consists of unsecured notes set to mature in 2029, was finalized after VEON's initial considerations for external financing disclosed on June 16. The arrangement allows VEON MidCo B.V. to issue these notes with an annual interest rate fixed at 9.000%. Furthermore, the expected credit rating for these notes, provided by trusted agencies such as S&P and Fitch, stands at BB-.
The Role of Guarantees in the Issuance
To bolster the attractiveness of this bond issuance, the notes will be guaranteed by VEON Amsterdam B.V. This strategic decision ensures that the notes will rank pari passu with the existing debt held by VEON HQ, reflecting a solidified financial position and offering reassurance to investors.
Insights from VEON’s CFO
Burak Ozer, the Chief Financial Officer of VEON, expressed enthusiasm regarding this successful placement, noting, "This successful new private placement marks another important milestone in VEON's renewed capital markets story. I'm thrilled to see investors' confidence in our strategic trajectory and financial outlook. This new issuance reinforces our access to global capital markets."
Future Use of Proceeds
The proceeds garnered from this bond issuance are earmarked for various corporate purposes. This funding will facilitate the optimization of VEON's capital structure, allowing the company to continue its expansion and innovation strategies.
About VEON
VEON stands as a Nasdaq-listed entity known for providing integrated connectivity and digital services to nearly 160 million users.Ops across six countries that account for more than 7% of the global population, VEON is committed to transforming lives through technology and digital initiatives that spur economic growth. You can learn more about VEON and its services at www.veon.com.
Frequently Asked Questions
What is the total amount raised by VEON in this bond placement?
VEON has raised USD 200 million through this bond placement.
What is the maturity date of the issued notes?
The notes are due in 2029.
What interest rate will the notes carry?
The notes have an annual interest rate of 9.000%.
What is the purpose of the funds from this bond issuance?
The proceeds will be used for general corporate purposes and to optimize VEON's capital structure.
Who provided the expected credit rating for these notes?
The expected credit rating from agencies like S&P and Fitch is BB-.
