VEON to draw down remaining revolver to maintain ‘prudent’ liquidity

By Rebecca Melvin

Concord, N.H., May 25 – VEON Ltd. is in discussions with one of its lenders for a remaining $82 million available balance under its revolving credit facility following a utilization request in April, according to a company press release on Wednesday.

The company drew down $610 million under the facility as of March 31, but the remaining borrowing commitment from Intesa Sanpaolo Bank SpA Amsterdam branch has not yet been received.

The revolver funds, which had totaled $692 million, have increased VEON Group’s headquarters-level cash position to $1.8 billion, enabling it to “maintain a prudent liquidity position in this period of macroeconomic uncertainty,” VEON Group CFR Serkan Okandan stated in the release.

VEON currently has $973 million outstanding under the facility, net of the $24 million with A.O. Raiffeisen, or Raiffeisen Russia, which will be repaid at the end of May due to the cancellation of its commitments in compliance with new Russian regulatory requirements.

VEON’s total cash and deposits have increased to about $2.4 billion, including $1.8 billion equivalent of U.S. dollar and euro-denominated cash and deposits held by its headquarters in Amsterdam as of May 23. This compares to $1.9 billion and $1.3 billion, respectively, as of March 31. In addition to the U.S. dollar and euro-denominated cash, VEON HQ has a limited amount of ruble-denominated cash to cover its upcoming coupon payments under its ruble notes.

Amsterdam-based VEON Ltd. provides mobile and fixed-line telecommunications services through its subsidiaries in emerging markets.

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