VEON issues CEO Letter to Investors on Group Financial Position, Reinstatement of Analyst Coverage and Unrestricted Trading
October 20 2023 - 10:10AM
VEON issues CEO Letter to Investors on Group Financial Position,
Reinstatement of Analyst Coverage and Unrestricted Trading
Amsterdam, 20 October 2023 – VEON Ltd. (NASDAQ: VEON,
Euronext Amsterdam: VEON), a global digital operator that provides
converged connectivity and online services today published the
following open letter from its Group CEO Kaan Terzioglu to its
investors. The open letter can be found on the company website:
www.veon.com
Amsterdam, 20 October 2023
Dear VEON Investors,
I am writing to you today to share a number of
key developments in VEON’s re-engagement with the capital markets.
Following our exit from Russia, VEON has a renewed focus on
leveraging our Digital Operator 1440 strategy in the six
fast-growing markets where we operate. I am pleased to note that we
enter this new phase supported by a solid financial foundation; and
that the investment community is already taking a fresh look at our
company and its potential to generate value and growth.
Group financial position
Following the early redemption of the VEON
Holdings December 2023 and June 2024 notes in September, and
considering VEON’s exit from Russia and the payment of October 2023
VEON Holdings bond in October, our pro-forma Group debt and cash
position as of 30 September 2023, is as follows:
- Group debt is USD 3.5bn (USD 4.4bn including leases), of which
USD 2.8bn at HQ
- Group cash is USD 1.7bn, of which USD 1.3bn at HQ1
- Group net debt including leases is USD 2.6bn, of which USD
1.6bn at HQ.
This is a major reduction from the Group net
debt including leases of USD 8.2bn as per 30 September
2022.
Our pro-forma Group weighted average cost of
debt, excluding leases, is approximately 8% with a Group weighted
average maturity of approximately 2.4 years.
Our pro-forma externally outstanding VEON
Holdings notes, their maturities and outstanding amounts are shared
at the end of this letter* for the clarity of our investors.
Reinstatement of independent analyst coverage
of VEON shares and return to unrestricted trading
We are pleased to report that independent
analyst coverage of VEON shares has resumed. New Street Research
reinstated its coverage of VEON shares on 11 October 2023; on 18
October 2023, Inam (via Tellimer) also initiated coverage of
VEON.
We can now also confirm stronger volumes in the
trading of our shares. We understand some of the world’s largest
banks are now accepting “buy” orders from our investors; and
welcome the fact that our investors are now able to work with these
institutions in purchasing VEON’s debt and equity instruments. We
would like to thank our investors for their patience and trust in
our business; and reiterate that we remain at their disposal should
they need our further support.
Reiterating our commitment to the future of
Ukraine
As we have communicated last week, we are also
actively engaging with our stakeholders to address the concerns
relating to some media reports in Ukraine. A VEON delegation
including members of our Board and management will be in Kyiv in
the coming days to visit Kyivstar and hold discussions with key
stakeholders, reiterating our commitment to the recovery and
reconstruction of Ukraine – for which we have committed USD 600
million over the course of the next three years.
I trust that these recent developments, combined
with the high potential of our business, will enable our existing
and potential investors to participate in the growth opportunity
that our business presents. We are confident in the value we can
generate in Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan
and Kyrgyzstan, which will support not only VEON’s value
proposition for its investors, but also the sustainable growth of
these markets that are home to 510 million people, or 7% of the
world’s population.
We look forward to working with VEON investors
and analysts in the months ahead, providing further clarity into
our investment case following our exit from Russia and answering
any further questions. Please reach out to our Investor Relations
team at ir@veon.com.
Thank you for your continued trust in our
company.
Kaan Terzioglu VEON Group Chief Executive Officer
*Pro-forma externally outstanding VEON Holdings notes:
ISIN |
Date of Issuance |
Maturity date |
Amount issued |
Amount outstanding |
US92334VAA35 (144A) XS2058691663
(REGS) |
October 9, 2019 tap: January 22, 2020 |
April
9, 2025 |
USD
1,000 million |
USD
556 million |
XS2184900269 (144A) XS2184900186
(REGS) |
June
18, 2020 |
June
18, 2025 |
RUB
20,000 million |
RUB
9,187 million |
XS2226712995 (144A) XS2226716392
(REGS) |
September 11, 2020 |
September 11, 2025 |
RUB
10,000 million |
RUB
3,274 million |
XS2343534462 (144A) XS2343532508
(REGS) |
September 16, 2021 |
September 16, 2026 |
RUB
20,000 million |
RUB
1,357 million |
US91823N2A05 (144A) XS2252958751
(REGS) |
November 25, 2020 |
November 25, 2027 |
USD
1,250 million |
USD
1,093 million |
About VEON VEON is a digital operator that provides
converged connectivity and digital services to nearly 160 million
customers. Operating across six countries that are home to
more than 7% of the world’s population, VEON is transforming lives
through technology-driven services that empower individuals and
drive economic growth. Headquartered in Amsterdam, VEON is
listed on NASDAQ and Euronext. For more information visit:
https://www.veon.com.
Disclaimer
This release contains “forward-looking statements,” as the
phrase is defined in Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended. Forward-looking statements are not
historical facts. Forward-looking statements are inherently subject
to risks and uncertainties, many of which VEON cannot predict with
accuracy and some of which VEON might not even anticipate. The
forward-looking statements contained in this release speak only as
of the date of this release. VEON does not undertake to publicly
update, except as required by U.S. federal securities laws, any
forward-looking statement to reflect events or circumstances after
such dates or to reflect the occurrence of unanticipated
events.
VEON’s results presented in this release, unless otherwise
stated, are not based on IFRS and have not been externally reviewed
and audited. The financial information included in this release is
preliminary and is based on a number of assumptions that are
subject to inherent uncertainties and subject to change. The
financial information presented herein is based on internal
management accounts, is the responsibility of management and is
subject to financial closing procedures which have not yet been
completed and has not been audited, reviewed or verified.
Contact Information
VEON Faisal Ghori Group Director of Investor
Relations ir@veon.com
VEON Hande Asik Group Director of Communication
pr@veon.com
TUVA Partners Julian Tanner julian.tanner@tuvapartners.com
1 Cash and cash equivalents do not include amounts relating to
banking operations in Pakistan.
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