Dear VEON stakeholders,
I am writing to update you on our strategic progress and latest achievements in several key areas of importance to the VEON Group. In addition, you have probably seen that VEON Ltd. today invited VEON Holdings BV 2023 bondholders to meet with VEON Ltd. to begin discussions regarding the 2023 Bonds shortly.
Our primary goal is to achieve a liquidity and capital structure that ensures the long-term financial stability of the group and puts VEON in the best position to achieve growth in the coming years.
Since my last letter, we have seen a steady increase in 4G users and we have reported double-digit local currency revenue growth for 8M 2022 in five of our seven markets. VEON is well positioned to continue its strategy to develop our digital operator business in our high growth markets (Pakistan, Bangladesh, Kazakhstan, Uzbekistan and Kyrgyzstan) and aim to accelerate these investments in the coming years.
Liquidity Update
In the past seven months, VEON Group has successfully strengthened its liquidity position at headquarters and this will remain one of the top priorities going forward. In addition, our operating companies continue to be self-sufficient in terms of their financing needs. Most recently, in August we announced the completion of the sale of our Algerian operator Djezzy to our regional partner FNI for proceeds of US$682 million. Following the sale of Djezzy, our total cash position is $3.2 billion, including $2.5 billion held at HQ level as of October 7, 2022.
We have also made good progress on our strategy to optimize the group’s capital structure over the longer term, taking into account the challenges we face in the current environment. Today we invited our 2023 bondholders to contact VEON Ltd. to engage in discussions with these bondholders with a view to maintaining a stable capital structure over the longer term, which we do in the interests of all…
