Vodafone Ukraine receives 7.6 times more applications for its offer to buy back eurobonds for $4.67 mln
The second largest Ukrainian mobile operator VF Ukraine (Vodafone Ukraine, VFU), which on July 15 announced the third offer to redeem its eurobonds in connection with the payment of dividends, again received applications that significantly exceeded the specified buyback amount, although the redemption price was again reduced to 85% of the nominal value.
"The offered bonds are accepted for purchase on a proportional basis in accordance with the scaling factor of 0.1315451889487317," the issuer said in a statement to the Irish Stock Exchange.
According to it, if the result of applying such a coefficient to the bond package of any owner is an amount less than the minimum nominal value, then such proposed bonds are rejected.
The first two times Vodafone Ukraine redeemed bonds for the equivalent of EUR1 million, while the third time for the equivalent of EUR1 million + $3.5 million.
The debut redemption was announced at a price of 99% of the nominal value, the second - 90% of the nominal value, and the third - 85% 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 - that is, the total amount of submitted applications exceeded the proposed buyback amount of $1.11 million by approximately 250 times.
The settlement date for the third tender offer will be approximately August 6, 2025.
The buyback 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 EUR1 million.
The company emphasized that in such a case, according to the terms of the bond issue, it must offer all bondholders to submit an application for their sale for an amount equal to the amount of dividends paid outside Ukraine.