Vodafone Ukraine raises eurobond buyback price for third time to 94% of par

The second largest Ukrainian mobile operator VFU Ukraine (Vodafone Ukraine), which, in connection with the payment of dividends since the end of May, has redeemed its own eurobonds for almost $7 million in three offers, has announced for the third time an increase in the buyback price at the fourth such tender - to 94% of par compared to 92% a week earlier, 90% at the end of August and 85% in the initial offer from August 13.

As noted in the company’s announcement to the Irish Stock Exchange, the maximum redemption amount remained at $5.12 million, to which it was increased from $3.945 million the week before last.

The deadline for accepting applications has been extended from September 18 to September 25, and settlements are now planned for approximately October 2.

The first two times Vodafone Ukraine redeemed bonds for the equivalent of EUR1 million. The debut redemption 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 redemption on the exchange, while the scaling factor of the first redemption was 0.0040355668.

According to the results of the third tender, where the redemption 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.

The bonds, maturing in February 2027 and bearing a nominal interest 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 the 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. In accordance with the restrictions of the National Bank, they will be paid in separate monthly dividend payments.

Each such monthly dividend is expected to be in the amount of hryvnia equivalent to EUR1 million. The company stressed that under the terms of the bond issue in such a case, it must offer all bondholders to apply to sell their bonds for an amount equal to the amount of dividends paid outside Ukraine. Since then, five monthly dividend payments have been made, each equivalent to approximately EUR1 million.

As reported, VFU in the first half of 2025 reduced its net profit by 13% compared to the same period last year - to UAH 1.705 billion, while its revenue increased by 15% - to UAH 13.518 billion.