- The VEON Ltd (NASDAQ: VEON) stock increased by 17.68% in the most recent trading session. This is why.
The VEON Ltd (NASDAQ: VEON) stock increased by 17.68% in the most recent trading session. Investors are responding to the company providing an update on its current liquidity position.
As of February 27, 2022, VEON had approximately $2.1 billion of cash and deposits, including $1.5 billion of USD and EUR denominated cash and deposits held at the level of its headquarters (HQ) in Amsterdam. And the HQ cash and deposits are held in bank accounts, money market funds, and on-demand deposits at a diversified group of international banks from the European Union, the United States, and Japan.
In addition to the above cash and deposits, VEON has a USD 1.250 billion committed revolving credit facility (RCF) available to it from a group of diversified lenders headquartered in the United States, Europe, and Asia.
VEON has utilized $430 million under its RCF on 28 February 2022 and used these funds to repay its $417 million notes which matured on March 1, 2022, and to pay the accrued interest on these notes. Following this utilization, $820 million remains undrawn under the RCF.
Following this repayment, VEON has no additional debt maturities at its HQ level during 2022. The first HQ maturity in 2023 is the $529 million 5.95% VEON Holdings’ notes maturing in February 2023.
“The USD 1.5 billion HQ cash and deposit balance and USD 0.8 billion undrawn credit line under the RCF will allow us to maintain a prudent liquidity position in these times of macroeconomic uncertainty.”
— Serkan Okandan, VEON’s Chief Financial Officer
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