VEON Ltd. (NASDAQ: VEON) confirmed that its unit VEON Finance Ireland Designated Activity Company has successfully started a new RUB 30 billion seven-year term loan with VTB Bank. VEON Holdings B.V. is the guarantor of the seven-year term loan. The VTB Bank facility, valued at RUB 30 billion, has a seven-year amortizing tenor and is fully floating.
Furthermore, the profits will be utilized for general business purposes. The firm is intended to use the profit for funding intercompany loans to PJSC VimpelCom. Moreover, the firm believed that the new facility will strengthen the Group's capital structure by extending the maturity of its debt portfolio.
In addition, earlier VEON disclosed that it is planning to shift its group parent company to the United Kingdom. The company is planning to launch a newly established UK incorporated the public limited company as the top holding company of the VEON Group. There are chances that the new UK Parent Company will replace VEON Ltd. as the VEON Group's ultimate parent company by way of a Bermuda court-approved scheme of arrangement.
VEON Ltd has earned a reputation as a provider of mobile and fixed-line telecommunications services through its entities. Through a variety of wireless, fixed, and broadband internet services, it provides voice, data, and other telecommunication services. Short messages, multimedia messages, caller number identification, call waiting are among the services provided by the company.