Ukraine’s second-largest mobile operator, Vodafone Ukraine (“Vodafone Ukraine,” VFU), which on July 15 announced a third offer to buy back its Eurobonds at a price reduced to 85% of their face value in connection with the payment of dividends, received applications for $53.395 million and satisfied them in the amount of $5.208 million.
“All purchased bonds have been cancelled, and following such cancellation, the total nominal value of bonds remaining in circulation is $292,532,259.80,” the company said in a statement on Monday on the Irish Stock Exchange.
Vodafone Ukraine recalled that the scaling factor was 0.131545188948731, and the tender offer was settled on August 6.
The first two times, Vodafone Ukraine redeemed bonds for an amount equivalent to EUR1 million, and the third time for an amount equivalent to EUR1 million + $3.5 million.
The debut buyback was announced at 99% of par value, the second at 90% of par value, and the third at 85% of par value. The company did not announce the results of the second buyback on the exchange, while the scaling factor for the first buyback was 0.0040355668.
The buyback of Eurobonds is related 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 announcement) for 2024. According to the restrictions of the National Bank, they will be paid in separate monthly dividend payments. Each such monthly dividend is expected to amount to the equivalent of EUR1 million in hryvnia.
The company emphasized that under the terms of the bond issue, in this 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.
VFU previously recalled that a total of $300 million in bonds maturing in February 2027 with a nominal rate of 9.625% per annum were issued, of which the company currently holds $0.5 million in bonds.
As reported, VFU increased its revenue by 13.1% to UAH 24.44 billion in 2024, while reducing its net profit by 30.1% to UAH 3.54 billion.
In January-March 2025, revenue grew by 14% compared to the same period in 2024, to UAH 6.59 billion, while net profit fell by 24%, to UAH 697 million.
