Sony Pixel Power calrec Sony

VEON announces launch of scheme of arrangement to extend 2023 Notes maturities

24/11/2022

24 Nov 2022

VEON announces launch of scheme of arrangement to extend 2023 Notes maturities Amsterdam, Netherlands, 24 November 2022 13:30 - VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON) ( VEON or, together with its subsidiaries, the Group ) and VEON Holdings B.V. (the Company ), a global digital operator that provides converged connectivity and online services, today announced the launch of a scheme of arrangement in England (the Scheme ) via the issuance of a Practice Statement Letter to extend the maturity of the 5.95% notes due February 2023 and 7.25% notes due April 2023 issued by the Company (together, the 2023 Notes ) by eight months from their respective maturity dates.

Rationale for the Amendments

The Scheme launched by the Company today proposes an eight-month extension to the respective maturity dates of the 2023 Notes, together with certain other amendments to the terms of the 2023 Notes and related trust deeds as further outlined in this announcement.

The Scheme represents the culmination of six months of discussions between the Group and its advisers during which they have considered multiple different potential transaction structures. If the status quo were to continue, the options available to it would be significantly constrained by the current and evolving political situation, international sanctions laws and Russian regulations. In these circumstances, the Group has concluded that a short-term extension of the maturity of the 2023 Notes represents the best option available to the Group and its stakeholders, as it will provide the Group with additional time to pursue a number of strategic transactions.

The Amendments will allow the Group time to conclude the agreed sale of its Russian subsidiary, PJSC VimpelCom ( VimpelCom ), as announced separately earlier today (see here) (the VimpelCom Disposal ), which is expected to be completed in early June 2023 (subject to receipt of required regulatory approvals, any required consent from VEON creditors and satisfaction of customary closing conditions). Under the sale agreement for the VimpelCom Disposal, VEON will receive total consideration of RUB 130 billion (approximately USD 2.1 billion[1]). Subject to receipt of the necessary licenses and/or approval from competent sanctions authorities, it is expected that the total consideration will be paid primarily by VimpelCom taking on and discharging certain notes issued by the Company, thus significantly deleveraging VEON's consolidated balance sheet. The Group considers that the VimpelCom Disposal represents the single-most material deleveraging action available to the Group, which will at the same time increase the prospect of future access to international debt capital markets, which are currently not available to the Group.

The Amendments, together with the deleveraging described above, are also expected to curtail the inefficient use of cash which would result from the payments on the Russian National Settlement Depository (the NSD ) held portion of the 2023 Notes being trapped in the international clearing systems and the principal amount of the 2023 Notes held through Russian depositaries being repaid by both the Company and VimpelCom due to the European Union's sanctions targeting the NSD, and possibly in response to United States and United Kingdom sanctions laws and regulations targeting Russia more broadly, as further described below. It will also provide short term stability and further optionality to implement the asset monetization strategy underpinning VEON's objectives to further reduce leverage and maximize its stakeholders' returns.

The Scheme launched by the Company today proposes the following changes with respect to the 2023 Notes (together, the Amendments ):

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)[2] 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[3]; and

payment of an amendment fee of 75bps payable on the 2023 Notes outstanding on their respective amended maturity dates.

Subject to the Amendments being successfully implemented, and completion of the VimpelCom Disposal, the Group currently intends to use excess liquidity to redeem financial liabilities to deleverage and reduce its interest obligations.

Background

Over the past nine months, the Group has successfully strengthened its liquidity position, and this will remain a key priority in the near term. However, despite the resilient performance of its underlying operating companies, which are considered largely self-sustaining, VEON's ability to upstream cash for debt service is currently impaired by currency and capital controls in two of its major markets (Ukraine and Russia) and other geopolitical/FX pressures affecting emerging markets generally, including the countries in which the Group has operations.

In addition, the conflict between Russia and Ukraine and developments since February 2022 with respect to sanctions laws and regulations have resulted in unprecedented challenges for VEON, limiting access to the international debt capital markets in which VEON has traditionally refinanced maturing debt and so hampering its ability to refinance indebtedness. Without a change in the status quo, the situation is likely to remain challenging, including as a result of the withdrawal of VEON's credit ratings by rating agencies due to VEON's current exposure to Russia.

Blocking of NSD Payments

As a result of sanctions laws and regulations imposed
LINK: https://www.veon.com/media/media-releases/2022/veon-announces-launch-o...
See more stories from vimpel

More from VimpelCom

04/12/2023

VEON's Kyivstar and Amazon Web Services Sign Memorandum of Cooperation to Support the Development of Ukrainian Businesses

04 Dec 2023 VEON's Kyivstar and Amazon Web Services Sign Memorandum of Coop...

27/11/2023

VEON Recognised for Crisis Response at World Communication Awards 2023

27 Nov 2023 VEON Recognised for Crisis Response at World Communication Awards 2023 Amsterdam, 27 November 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: V...

27/11/2023

VEON Implements New Clawback Policy and Updates Incentive Plans to Enhance Accountability in Compliance with Nasdaq Listing Standards

27 Nov 2023 VEON Implements New Clawback Policy and Updates Incentive Plans to ...

20/11/2023

VEON 3Q23 trading update: raising full-year revenue and EBITDA guidance, return to USD revenue growth, exit from Russia completed

20 Nov 2023 VEON 3Q23 trading update: raising full-year revenue and EBITDA guid...

15/11/2023

Going Asset-Light: VEON and Summit Reach USD 100m Deal for Partial Sale of Bangladesh Towers Portfolio

15 Nov 2023 Going Asset-Light: VEON and Summit Reach USD 100m Deal for Partial ...

14/11/2023

VEON Welcomes Former U.S. Secretary of State Mike Pompeo to Kyivstar Board of Directors

14 Nov 2023 VEON Welcomes Former U.S. Secretary of State Mike Pompeo to Kyivsta...

31/10/2023

VEON Launches Digital-First Operator OQ in Uzbekistan

31 Oct 2023 VEON Launches Digital-First Operator OQ in Uzbekistan New brand targets digital natives with integrated media and entertainment services Amsterda...

30/10/2023

VEON files motion with Kyiv Court challenging the freezing of corporate rights in Kyivstar

30 Oct 2023 VEON files motion with Kyiv Court challenging the freezing of corpo...

23/10/2023

VEON Group Board and Management Delegation Visit Ukraine, Highlighting Commitment to the Country's Future

23 Oct 2023 VEON Group Board and Management Delegation Visit Ukraine, Highlight...

20/10/2023

VEON issues CEO Letter to Investors on Group Financial Position, Reinstatement of Analyst Coverage and Unrestricted Trading

20 Oct 2023 VEON issues CEO Letter to Investors on Group Financial Position, Re...

12/10/2023

VEON is the sole and rightful owner of Kyivstar

12 Oct 2023 VEON is the sole and rightful owner of Kyivstar Company responds to speculation about Kyivstar Amsterdam, 12 October 2023 - VEON Ltd. (NASDAQ: VE...

09/10/2023

VEON closes the sale of its Russia operations, completes its exit from Russia

09 Oct 2023 VEON closes the sale of its Russia operations, completes its exit from Russia Amsterdam, 09 October 2023, 15:15 CET - VEON Ltd. (NASDAQ: VEON, Euro...

05/10/2023

Beeline Uzbekistan invests in developing local IT talent with Beeline Academy

05 Oct 2023 Beeline Uzbekistan invests in developing local IT talent with Beeline Academy Beeline Academy launched to help train youth with emphasis on data pr...

28/09/2023

Keeping Ukraine connected: Kyivstar CTO addresses GSMA Sec Con at MWC Las Vegas 2023

28 Sep 2023 Keeping Ukraine connected: Kyivstar CTO addresses GSMA Sec Con at M...

22/09/2023

VEON Hits a Six in Cricket Asia Cup 2023

22 Sep 2023 VEON Hits a Six in Cricket Asia Cup 2023 Tamasha Draws Record 14.4 Million Digital Viewers During the Tournament Amsterdam, 22 September 2023: VE...

20/09/2023

Kyivstar Raises UAH100 million to Support Ukraine's Demining

20 Sep 2023 Kyivstar Raises UAH100 million to Support Ukraine's Demining Amsterdam, 20 September 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON),...

13/09/2023

VEON finalizes sale agreement to exit Russia

13 Sep 2023 VEON finalizes sale agreement to exit Russia Amsterdam, 13 September 2023 12:45 CET - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global ...

13/09/2023

NOTICE OF REDEMPTION June 2024

13 Sep 2023 NOTICE OF REDEMPTION June 2024 NOTICE OF REDEMPTION: VEON HOLDINGS B.V. (the Issuer) (a private company incorporated under Dutch law) US$900,000...

13/09/2023

NOTICE OF REDEMPTION December 2023

13 Sep 2023 NOTICE OF REDEMPTION December 2023 NOTICE OF REDEMPTION: VEON HOLDINGS B.V. (the Issuer) (a private company incorporated under Dutch law) US$700...

13/09/2023

VEON notifies bondholders of early payment of its 2023 and 2024 notes

13 Sep 2023 VEON notifies bondholders of early payment of its 2023 and 2024 notes Amsterdam, 13 September 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: V...

11/09/2023

Beeline Uzbekistan enhances its 4G network, supporting digital operator services across the country

11 Sep 2023 Beeline Uzbekistan enhances its 4G network, supporting digital oper...

07/09/2023

VEON Group Announces Vesting of Share Award for the Group CEO

07 Sep 2023 VEON Group Announces Vesting of Share Award for the Group CEO Amsterdam, 7 September 2023: VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a gl...

05/09/2023

CEO Letter to Investors: VEON confirms unhindered trading, offers support to investors

05 Sep 2023 CEO Letter to Investors: VEON confirms unhindered trading, offers s...

29/08/2023

VEON discloses its 2Q23 unaudited interim condensed consolidated financial statements

29 Aug 2023 VEON discloses its 2Q23 unaudited interim condensed consolidated fi...

22/08/2023

VEON's Banglalink Announces Strategic Partnership with Digital Communication platform BiP in Bangladesh

22 Aug 2023 VEON's Banglalink Announces Strategic Partnership with Digital ...

17/08/2023

Stepping up the fintech ambition in Bangladesh, VEON and Banglalink apply for a Digital Banking License

17 Aug 2023 Stepping up the fintech ambition in Bangladesh, VEON and Banglalink...

03/08/2023

VEON publishes 2Q23 trading update

03 Aug 2023 VEON publishes 2Q23 trading update Strong results, full-year revenue guidance raisedAmsterdam, 3 August 2023 07:00 CEST - VEON Ltd. (NASDAQ: VEON, ...

02/08/2023

VEON and Rakuten to Cooperate in Open RAN and Digital Services to Rebuild Ukraine's Infrastructure

02 Aug 2023 VEON and Rakuten to Cooperate in Open RAN and Digital Services to R...

31/07/2023

VEON appoints Faisal Ghori Group Director Investor Relations

31 Jul 2023 VEON appoints Faisal Ghori Group Director Investor Relations Amsterdam, 31 July 2023 - VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON), a global...

25/07/2023

VEON Group Announces Share Awards for Members of Board and Management Team

25 Jul 2023 VEON Group Announces Share Awards for Members of Board and Management Team Amsterdam, 25 July 2023, 10:00 CET: VEON Ltd. (NASDAQ: VEON, Euronext Am...

24/07/2023

VEON files Form 20-F for financial year 2022

24 Jul 2023 VEON files Form 20-F for financial year 2022 Amsterdam, 24 July 2023 22:00 CEST - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digi...

19/07/2023

VEON Announces Leaner HQ Management Team Strengthening Operating Company Boards

19 Jul 2023 VEON Announces Leaner HQ Management Team Strengthening Operating Company Boards Amsterdam, 19 July 2023, 17:00 CET: VEON Ltd. (NASDAQ: VEON, Eurone...

17/07/2023

VEON's Beeline Kazakhstan Deploys Solar Power to Connect Remote Areas

17 Jul 2023 VEON's Beeline Kazakhstan Deploys Solar Power to Connect Remote Areas Equipment supports 4G network in 2 areas with scarce energy supply Amst...

10/07/2023

VEON Publishes FY2022 Integrated Annual Report

10 Jul 2023 VEON Publishes FY2022 Integrated Annual Report Highlights Strong Environmental, Social, and Governance Performance Amsterdam, 10 July 2023: VEON Lt...

30/06/2023

VEON Shareholders Approve New Board, Morten Lundal Elected New Chair

30 Jun 2023 VEON Shareholders Approve New Board, Morten Lundal Elected New Chair Amsterdam, 30 June 2023, 07.00 CET: VEON Ltd. (NASDAQ: VEON, Euronext Amsterda...

29/06/2023

VEON discloses its 1Q23 unaudited interim condensed consolidated financial statements

29 Jun 2023 VEON discloses its 1Q23 unaudited interim condensed consolidated fi...

29/06/2023

VEON reveals faster local currency revenue and EBITDA growth in first five months at AGM

29 Jun 2023 VEON reveals faster local currency revenue and EBITDA growth in fir...

24/06/2023

VEON publishes audited financial statements for year ended 31 December 2022

25 Jun 2023 VEON publishes audited financial statements for year ended 31 December 2022 Amsterdam, 25 June 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: ...

21/06/2023

VEON to Invest USD 600 million in Ukraine's Recovery

21 Jun 2023 VEON to Invest USD 600 million in Ukraine's Recovery Company calls on other stakeholders to Invest in Ukraine, Now! London, 21 June 2023 - V...

16/06/2023

VEON Appoints Omiyinka Doris Group General Counsel

16 Jun 2023 VEON Appoints Omiyinka Doris Group General Counsel Amsterdam, 16 June 2023 - VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON), a global digital...

13/06/2023

VEON Granted Extension by Nasdaq for 20-F Filing

13 Jun 2023 VEON Granted Extension by Nasdaq for 20-F Filing Amsterdam, 13 June 2023 - VEON Ltd. (NASDAQ, Euronext Amsterdam: VEON), a global digital operator ...

12/06/2023

How 4G Offered Forewarning Ahead of Cyclone Mocha

When Cyclone Mocha bore down on the coast of Bangladesh and Myanmar in mid-May it reminded many of the terrible events of 1991 when winds of 250 km/h caused sea...

09/06/2023

Announcement of Currency Exchange Option

09 Jun 2023 Announcement of Currency Exchange Option Amsterdam, 9 June 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator tha...

07/06/2023

VEON publishes corporate governance report

07 Jun 2023 VEON publishes corporate governance report Amsterdam, 7 June 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator t...

07/06/2023

VEON's Beeline Kazakhstan Launches IT Subsidiary QazCode

07 Jun 2023 VEON's Beeline Kazakhstan Launches IT Subsidiary QazCode Amsterdam, 7 June - VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON), a global digit...

07/06/2023

VEON publishes Corporate Governance Report for financial year 2022

Amsterdam, 7 June 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides connectivity and online services ( VEON or...

30/05/2023

VEON enters the final stages in the sale of its Russia operations

30 May 2023 VEON enters the final stages in the sale of its Russia operations Amsterdam, Netherlands, 30 May 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam...

24/05/2023

Keeping Local Talent, Local

Kyrgyzstan, like many other smaller countries depends on savvy IT experts to modernise and boost its economy, but the digital workforce needs training and retai...

23/05/2023

Kyivstar Supports Treatment of Child Burn Victims with Donation to Lviv Hospital

23 May 2023 Kyivstar Supports Treatment of Child Burn Victims with Donation to Lviv Hospital Kyivstar-funded medical equipment will facilitate in-country treat...

22/05/2023

VEON Announces 2023 AGM and Board Nominees

22 May 2023 VEON Announces 2023 AGM and Board Nominees Amsterdam, 22 May 2023 - VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator t...