Vodafone Ukraine buys back $5.2 mln in eurobonds

Vodafone Ukraine (VF Ukraine, VFU), the country's second-largest mobile operator, announced on July 15 that, alongside paying dividends, it would launch its third buyback offer for its eurobonds at 85% of face value. The company received offers totaling $53.395 million and accepted $5.208 million of them.

"All repurchased bonds have been canceled. After cancellation, the total nominal value of bonds remaining in circulation is $292,532,259.80," the company said Monday in a filing to the Irish Stock Exchange.

Vodafone Ukraine noted that the scaling factor was 0.131545188948731, and settlement under the tender offer took place on August 6.

The company's two previous buybacks amounted to the equivalent of EUR 1 million each, with the third totaling EUR 1 million plus $3.5 million. The debut buyback was offered at 99% of face value, the second at 90%, and the third at 85%. The company did not disclose results of the second buyback, while the scaling factor for the first was 0.0040355668.

The eurobond buybacks are linked to the company's April 24, 2025, announcement of a UAH 660.245 million ($15.9 million at the rate cited in the release) dividend payout to its shareholder for 2024. Under National Bank restrictions, these dividends are being paid in separate monthly installments, with each monthly payment equal to the hryvnia equivalent of EUR 1 million.

Under the bond issuance terms, in such cases the company must offer all bondholders the opportunity to tender bonds for sale in an amount equal to the dividends paid abroad.

VFU reminded that its outstanding eurobonds – due February 2027 with a 9.625% annual coupon – were originally issued for $300 million. The company now holds $0.5 million of them in treasury.