VEON announces amendments to Russian operations sale and early bond redemption

Amsterdam-based global digital operator, VEON Ltd. (NASDAQ:VEON) (AMS:VEON), has declared two significant financial moves this Wednesday. The company has issued redemption notices for the early payment of its bonds maturing in December 2023 and June 2024. Concurrently, VEON also announced amendments to the sale and purchase agreement of its Russian operations.

The company’s Group CFO, Joop Brakenhoff, stated that the early redemption of these notes aligns with their broader strategic objective of extending their average debt maturity and proactively addressing upcoming maturities. The bonds will be fully redeemed by the set redemption date of 27 September 2023.

In addition to the bond redemption, VEON has also updated the terms of the sale of its Russian operations to a buyer owned by certain senior members of PJSC VimpelCom (NASDAQ:)’s management team. The amendments have no significant impact on the economic terms of the original transaction, which was announced on 24 November 2022.

As per the revised agreement, the entire consideration for the sale will be satisfied by transferring the VEON Holdings Bonds acquired by PJSC VimpelCom to a wholly owned subsidiary of VEON Holdings. This subsidiary will hold these notes until their cancellation or maturity. Approvals from the U.S. and other regulatory bodies have been received for transferring approximately 95% of such VEON Holdings Bonds. The remaining bonds will be transferred once the pending regulatory approval is in place, which may occur post-closing.

VEON Group CEO, Kaan Terzioglu, said that their exit strategy is an optimal solution for all stakeholders – customers, employees, creditors, and investors worldwide.

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