VEON issues supplemental Practice Statement Letter

Amsterdam, Netherlands, 9 December 2022 21:15 CET: VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON) ( VEON or, together with its subsidiaries, the Group ), a global digital operator that provides converged connectivity and online services, and its subsidiary VEON Holdings B.V. (the Company ) refer to the announcement dated 24 November 2022 relating to the launch of the Company's proposed scheme of arrangement (the Scheme ) in respect of the 5.95% notes due February 2023 and 7.25% notes due April 2023 issued by the Company (together, the 2023 Notes ) and the issuance of the Practice Statement Letter on the same date (the Initial Practice Statement Letter ). The Company has today issued a supplemental Practice Statement Letter in connection with the Scheme (the Supplemental Practice Statement Letter ).

Capitalised terms used but not otherwise defined herein shall have the meaning given to them in the Initial Practice Statement Letter, which is available via the Scheme Website at https://deals.is.kroll.com/veon.

As set out in the announcement of 24 November 2022, the Scheme originally proposed the following amendments to the 2023 Notes:

- an eight-month extension of the respective maturity dates of the February 2023 Notes and April 2023 Notes to October 2023 and December 2023 respectively;

- an amendment of the consent and quorum thresholds for ordinary matters and Reserved Matters (as defined in the 2023 Notes Trust Deeds) and excluding beneficial owners of the 2023 Notes who are the target of applicable sanctions laws or regulations that prohibit them from dealing with the 2023 Notes from counting in the consent and quorum thresholds; and

- payment of an amendment fee of 75bps payable on the 2023 Notes outstanding on their respective amended maturity dates (the Amendment Fee ).

Following feedback from certain of the 2023 Noteholders, the Company has today informed the Scheme Creditors, by the Supplemental Practice Statement Letter, which is also available via the Scheme Website at https://deals.is.kroll.com/veon, that it has amended the terms of the proposal set out in the Scheme. The enhancements to the terms of the proposed Scheme set out in the Supplemental Practice Statement Letter are:

- an increase in the Amendment Fee to 200bps (which will be payable on the new maturity dates of the 2023 Notes on the 2023 Notes outstanding at that time); and

- the inclusion of a put right (the Put Right ) requiring the Company to repurchase 2023 Notes in an aggregate amount of USD 600 million (or, if the principal amount of the 2023 Notes exercising the Put Right is less than USD 600 million, such lower amount), subject to:

compliance by the Company with all applicable laws and regulations, including Sanctions laws and regulations; and

VEON Ltd., together with VEON Amsterdam B.V. and the Company, having an aggregate cash balance in their accounts in excess of USD 1 billion (net of the aggregate amount drawn under the Company's multicurrency revolving facility, which as of today is USD 1,055,000,000) at 9:00 a.m. (CET) on the business day immediately preceding the later to occur of (A) 2 May 2023, and (B) the date the amendments to the 2023 Notes pursuant to the Scheme become effective (the Cash Balance Test Date ).

If the above conditions are satisfied, the Put Right will be exercisable from the first business day following the Cash Balance Test Date. The 2023 Noteholders will then have ten calendar days to exercise the Put Right by complying with procedures specified by the Company.

The Put Right will be exercisable at a purchase price of 101 per cent. of the principal amount, together with accrued and unpaid interest.

To the extent the aggregate amount of 2023 Notes with respect to which the Put Right has been validly exercised exceeds USD 600 million, the repurchase shall be made on a pro rata basis by reference to the principal amount of 2023 Notes that exercise the Put Right.

The Company will undertake pursuant to the Scheme and the amended 2023 Notes Trust Deeds not to (and not to permit any of its subsidiaries, other than VimpelCom, to) tender for any Notes until after the settlement of each validly executed Put Right.

Further detail on those amendments to the proposal set out in the Scheme is set out in the Supplemental Practice Statement Letter.

Scheme of Arrangement

The Scheme is subject to obtaining the necessary majority consents (being a majority in number, representing at least 75% by value, of those beneficial owners of the 2023 Notes present and voting at the Scheme meeting, either in person or by proxy). Any sanctioned beneficial owners of the 2023 Notes and sanctioned persons that may act as custodian for beneficial owners of the 2023 Notes will be excluded from participating in and voting on the Scheme.

All actions taken in connection with the Amendments shall be in full compliance with all applicable sanctions laws and regulations, including any economic or financial sanctions laws or regulations as amended from time to time, administered, enacted, or enforced by: the United States; the United Nations; the European Union or any member states thereof; the United Kingdom; Bermuda and other jurisdictions applicable to the Group (excluding the Russian Federation and the Republic of Belarus), and any necessary licenses and approvals issued by the competent sanctions authorities of the foregoing jurisdictions.

Next Steps

Further details regarding the Scheme and the Amendments are contained in the Initial Practice Statement Letter and Supplemental Practice Statement Letter, each of which are available on the Scheme Website at https://deals.is.kroll.com/veon.

The Group is targeting the sanctioning and effectiveness of the Scheme in late January or early February. If the Scheme becomes effective, all of the Scheme Creditors (irrespective of whether

LINK:	https://www.veon.com/media/media-releases/2022/veon-issues-supplementa...
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