VimpelCom Holdings obtains new $1 billion eight-year credit facility

By Tali Rackner

Norfolk, Va., Nov. 20 – VimpelCom Ltd. completed a new $1 billion credit facility through China Development Bank and Bank of China for VimpelCom Holdings BV, according to a 6-K filed Wednesday with the Securities and Exchange Commission.

The eight-year revolving credit facility is unsecured and guaranteed by VimpelCom Amsterdam BV. It is in addition to the $500 million credit facility signed with China Development Bank in 2012.

Proceeds will be used to fund capital expenditures for various operating companies. VimpelCom has been investing in high-quality networks across its operations to capture the opportunity from growth in mobile data and strengthen the company’s value proposition to its customers, the filing said.

Our funding and liquidity position remains extremely solid and this facility only provides even greater financial flexibility for the Group,” chief financial officer Andrew Davies said in the filing.

“Our cash flows remain robust and with an improved debt maturity schedule, no major refinancing obligations until 2020, and a strong liquidity position, VimpelCom is well funded.”

VimpelCom is a telecommunications provider based in Amsterdam. Its predecessor was Moscow-based OJSC VimpelCom.

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