VEON Prices $1.4 Billion Bond with 6.95% 2031 and 7.45% 2033 Notes
VEON•VEON’s subsidiary priced a $1.4 billion dual-tranche bond, issuing $700 million of 6.95% notes due June 2031 and $700 million of 7.45% notes due June 2033, both at par. Net proceeds will refinance up to $750 million of 3.375% notes due 2027, extending maturities and optimizing the balance sheet.
1. Offering Details
VEON Midco B.V. priced a dual-tranche, senior unsecured bond totaling USD 1.4 billion in two equal tranches: USD 700 million of 6.95% notes due June 1, 2031 (non-callable for two years) and USD 700 million of 7.45% notes due June 1, 2033 (non-callable for three years), both at par.
2. Use of Proceeds
The company will use net proceeds to refinance existing debt, including up to USD 750 million of its 3.375% senior notes due 2027 via a tender offer launched May 18, thus extending maturities and addressing near-term obligations.
3. Credit Ratings and Trading Plans
The new notes are expected to receive BB- ratings from S&P and Fitch, will rank pari passu with existing debt, and VEON plans to list them on the Luxembourg Stock Exchange’s Euro MTF market under Rule 144A and Regulation S.
4. Balance Sheet Impact
The transaction marks a significant step in VEON’s balance sheet optimization, reinforcing its access to international capital markets and potentially impacting future interest expenses and liquidity profile.
