Benzinga | Jun 24, 2021 10:32AM EDT

VEON Recently Reported Its Jazz Unit Secured $320M Syndicated Credit Facility

VEON Ltd. (NASDAQ:VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that its operating company in Pakistan, Jazz, has secured a PKR 50 billion (approximately USD 320 million1) syndicated credit facility from a banking consortium led by Habib Bank Limited (HBL). This 10-year facility will be used to finance the company's ongoing 4G network rollouts and technology upgrades, as well as to address upcoming maturities.

The facility is the first of its kind to be extended to the local telecoms sector in terms of amount and tenor. The facility is fully subscribed by HBL, the consortium's investment agent and mandated lead arranger, along with United Bank Limited, National Bank of Pakistan, MCB Bank, Bank Alfalah, Allied Bank Limited, Askari Bank Limited, Bank of Punjab, Meezan Bank Limited and Faysal Bank Limited, which are also acting as the mandated lead arrangers and advisors on this deal.

As the country's leading digital services provider, Jazz has over 69 million subscribers and more than 28 million 4G users nationwide. Over a period of two years, the company has invested USD 462 million in 4G infrastructure. The Pakistan Credit Rating Agency Limited has recently upgraded Jazz's long-term rating to 'AA' with a stable outlook, underscoring the company's strong financial foundations.

Serkan Okandan, VEON's Chief Financial Officer, said: "This facility is a further milestone in our ongoing efforts to improve the Group's capital structure by increasing local borrowing in order to match our local currency revenues while extending the maturity of our debt portfolio."