VEON prices $200 million private placement of senior unsecured notes

DUBAI - Global digital operator VEON Ltd. (NASDAQ:VEON), a $3 billion market cap company with impressive 87% gross profit margins and operations across six countries, announced on Wednesday it has completed the pricing of a $200 million private placement of senior unsecured notes due in 2029 with institutional investors. According to InvestingPro analysis, VEON maintains a GREAT overall financial health score.

The notes, issued by VEON MidCo B.V., are priced at par with an annual interest rate of 9.000% and carry an expected credit rating of BB- from S&P and Fitch. They will be guaranteed by VEON Amsterdam B.V. and will rank equally with VEON HQ’s outstanding debt.

Settlement is expected on July 15, 2025, subject to customary closing conditions. The company plans to use the proceeds for general corporate purposes and to optimize its capital structure.

"This successful new private placement marks another important milestone in VEON’s renewed capital markets story," said VEON CFO Burak Ozer in the press release statement.

The notes have not been registered under the U.S. Securities Act of 1933 and are being offered in transactions exempt from registration requirements. There will be no public offering of the notes in the United States.

VEON operates across six countries providing digital and connectivity services to nearly 160 million customers. The company first announced it was considering options to raise external financing through a private placement on June 16, 2025.

In other recent news, VEON Ltd. reported its first-quarter financial results for 2025, revealing a 12.9% revenue increase in local currency terms and an 8.9% rise to $1.026 billion in U.S. dollar terms. Adjusted EBITDA also saw growth, increasing by 10.4% in local currency and 13.7% to $439 million in U.S. dollars. Benchmark reiterated its Buy rating for VEON, maintaining a $60.00 price target. The company has commenced the third phase of its $35 million share buyback program, following the completion of the second phase. Additionally, VEON has finalized a strategic partnership with Pakistan’s Engro Corporation, aimed at enhancing telecommunications infrastructure. This partnership involves transferring infrastructure assets to Engro Connect, which will pay Jazz approximately USD 188 million. VEON also received approval for Kyivstar to test Starlink Direct-to-Cell services in Ukraine, with plans for a full launch in Q4 2025. Benchmark noted that geopolitical factors, such as the Israel-Iran conflict, have influenced market sentiment, though they maintain a positive long-term outlook for VEON.

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