Vodafone Ukraine increases volume of next eurobond redemption to $5.1 mln
The second largest Ukrainian mobile operator Vodafone Ukraine (VFU), which, in connection with the payment of dividends since the end of May, has bought back its own eurobonds worth almost $7 million based on three offers, announced an increase in the redemption volume at the fourth such tender by $1.17 million, to $5.12 million.
In a statement to the Irish Stock Exchange, the company noted that this was due to the company's fifth monthly dividend payment of UAH 48.47 million, or about EUR 1 million.
Earlier, in late August, Vodafone Ukraine increased the redemption price from 85% to 90% of the nominal value and extended the deadline for accepting applications from August 28 to September 11, and settlements are now planned for approximately September 18.
The first two times, Vodafone Ukraine bought back bonds for the equivalent of EUR 1 million. The debut buyback was announced at a price of 99% of the nominal value, the second - 90% of the nominal value. The company did not announce the results of the second buyback on the exchange, while the scaling factor of the first buyback was 0.0040355668.
According to the results of the third tender, where the buyback price was reduced to 85% of the nominal value, and the offer was limited to $4.67 million, Vodafone Ukraine received applications for $53.395 million and satisfied them for $5.208 million. The scaling factor was 0.1315451889487317.
Bonds maturing in February 2027 and bearing a nominal rate of 9.625% per annum were issued for $300 million. After the cancellation of the redeemed bonds, the total nominal value of the bonds remaining in circulation is $292.532 million.
The redemption of eurobonds is due to the fact that on April 24, 2025, VFU announced the payment of dividends to its shareholder in the amount of UAH 660.245 million ($15.9 million at the exchange rate specified in the notification) for 2024. According to the restrictions of the National Bank, they will be paid in separate monthly dividend payments. It is expected that each such monthly dividend will amount to an amount in hryvnias equal to EUR 1 million. The company emphasized that under the terms of the bond issue, in such a case, it must offer all bondholders to submit an application for their sale for an amount equal to the amount of dividends paid outside Ukraine.
