Vodafone Ukraine announces $1.1 mln eurobond buyback following start of dividend payments
Vodafone Ukraine (VFU), the country's second-largest mobile network operator, has announced a $1.11 million buyback offer for its eurobonds following the payment of its first monthly dividend to shareholder Telco Investments B.V., amounting to UAH 46.092 million on May 14.
According to the company's stock exchange filing on Friday, the move follows amendments introduced by the National Bank of Ukraine on December 21, 2024, which allow monthly foreign dividend transfers not exceeding EUR 1 million.
On April 24, 2025, VFU declared a total dividend of UAH 660.245 million (approximately $15.9 million at the stated exchange rate) for the year 2024, to be disbursed through monthly installments. Each monthly dividend is expected to match the hryvnia equivalent of EUR 1 million.
Under the bond terms, the company is required to offer bondholders the option to sell back a proportionate amount equal to the dividends paid abroad.
Per the announced terms, the buyback will be executed at 99% of face value.
VFU noted that the eurobond issue, due in February 2027 with a 9.625% annual coupon, totals $300 million, of which the company currently holds $0.5 million.
The buyback offer is open for submissions through June 6.
