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VimpelCom unit prices US$1.2bn bond offering
VimpelCom has priced a US$1.2bn dual-tranche bond offering via Egypt-based unit Global Telecom Holding’s (GTH) Dutch subsidiary. The wholly owned subsidiary, GTH Finance, will issue the two tranches: US$500m of 6.25% senior notes due April 2020 and US$700m of 7.25% senior notes due April 2023, Amsterdam-based VimpelCom, which has its core operations in Russia, said in a statement.
VimpelCom (NASDAQ:VIP) has priced a US$1.2bn dual-tranche bond offering via Egypt-based unit Global Telecom Holding’s (GTH) (EGX:GTH.CA) Dutch subsidiary.
The wholly owned subsidiary, GTH Finance, will issue the two tranches: US$500m of 6.25% senior notes due April 2020 and US$700m of 7.25% senior notes due April 2023, Amsterdam-based VimpelCom, which has its core operations in Russia, said in a statement. VimpleCom Holdings is acting as guarantor for both tranches for a fee of 3% per annum.
The Dutch unit will lend the proceeds to GTH (formerly Orascom Telecom Holding) at a rate of 9.25% per annum for the loan due 2020 and of 10.25% per annum for the loan due 2023. GTH, in turn, will use some of the funds to repay a loan from VimpelCom. The remainder will be used by VimpelCom for general corporate purposes.
GTH noted in a stock exchange filing that these rates are lower than the maximum rate approved by its shareholders for this transaction. The operator expects settlement to take place on 26 April.
VimpelCom has a 51.9% stake in GTH, which operates mobile networks in Algeria (Djezzy), Pakistan (Mobilink) and Bangladesh (Banglalink).
Earlier this month, VimpelCom reportedly completed the sale of the 60% stake in Telecel Zimbabwe it held via GTH to the Zimbabwean government for US$40m. GTH had agreed to sell its stake in Telecel International, which in turn owned the 60% stake in Telecel Zimbabwe. The remainder of Telecel Zimbabwe is held by local investor group the Empowerment Corporation.
In March, VimpelCom and Pakistan’s Warid Telecom won approval from the Pakistani competition regulator to merge their local mobile units.
