Ukraine’s second-largest mobile operator, VF Ukraine (Vodafone Ukraine, VFU), which has bought back nearly $7 million worth of its own Eurobonds since the end of May as a result of three offers in connection with dividend payments, has announced an increase in the repurchase amount in 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 is due to the company’s fifth monthly dividend payment of UAH 48.47 million, or about EUR 1 million.
Earlier, at the end of 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, with settlements now planned for approximately September 18.
The first two times, Vodafone Ukraine redeemed bonds for an amount equivalent to EUR 1 million. The debut redemption was announced at a price of 99% of the nominal value, the second at 90% of the nominal value. The company did not announce the results of the second buyback on the stock exchange, while the scaling factor for the first buyback 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 bids for $53.395 million and satisfied them in the amount of $5.208 million. The scaling factor was 0.1315451889487317.
Bonds maturing in February 2027 with a coupon 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 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 UAH 1 million. 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.
As reported, VFU reduced its net profit by 13% in the first half of 2025 compared to the same period last year, to UAH 1.705 billion, while its revenue grew by 15%, to UAH 13.518 billion.
Vodafone Ukraine (VFU), Ukraine’s second-largest mobile operator, which has repurchased its own Eurobonds worth nearly $7 million since the end of May following three offers in connection with the payment of dividends, announced an increase in the redemption price in the fourth such tender from 85% to 90% of the nominal value.
As stated in the company’s announcement on the Irish Stock Exchange, the maximum redemption amount remained at $3.945 million, as announced on August 13, but the deadline for accepting applications was extended from August 28 to September 11, and settlements are now planned for approximately September 18.
The first two times, Vodafone Ukraine repurchased bonds for an amount equivalent to EUR1 million. The debut repurchase was announced at a price of 99% of the nominal value, the second at 90% of the nominal value. The company did not announce the results of the second buyback on the stock exchange, while the scaling factor for the first buyback 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 in the amount of $5.208 million. The scaling factor was 0.1315451889487317.
Bonds maturing in February 2027 with a nominal rate of 9.625% per annum were issued for $00 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 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. It is expected that each such monthly dividend will amount to UAH 1 million. Four such payments have already been made.
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.
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.
Ukrzaliznytsia JSC (UZ) paid the coupon payment on its 2026 Eurobonds due on July 9 in full and on time, said Oleksandr Pertsovsky, Chairman of the Board of the company.
On the sidelines of the panel discussion “No Security – No Recovery” organized by the Pinchuk Foundation and YES on the sidelines of URC2025, he emphasized that the company was fulfilling its obligations despite the deterioration in liquidity.
The day before, UZ announced that it would pay coupons due on July 9 and 15 on its Eurobonds maturing in 2026 and 2028, respectively, although in Q1 2025, EBITDA reached negative territory due to a drop in cargo volumes (-17% year-on-year compared to Q1 2024) and a rapid increase in operating expenses.
“Since the beginning of the year, available cash has decreased significantly, increasing the need for financing from international financial institutions to cover critical capital investments and liquidity needs during the ongoing war,” the press service said.
“Without such support from strategic partners, the company would likely not have been able to fulfill its financial obligations to Eurobond holders,” the press release said.
In addition, it was noted that Ukrzaliznytsia has engaged a financial advisor and is seeking a solution to its Eurobonds through negotiations with the Eurobond holders in order to achieve appropriate debt relief and mitigate liquidity challenges in the coming years.
In January 2025, Ukrzaliznytsia capitalized the postponed coupon payments on the 8.25% Eurobonds 2026 in the amount of $108.28 million and the 7.875% Eurobonds 2028 in the amount of $51.9 million as a result of the restructuring in 2022.
Ukraine has reached an agreement in principle with the Eurobond Holders Committee on restructuring, Prime Minister Denys Shmyhal said.
“We are restoring debt sustainability. Today, we have reached agreements in principle with the Eurobond Holders Committee of Ukraine. This is an important step in the debt restructuring process that will save USD 11.4 billion in debt service over the next few years. It will save USD 11.4 billion on its servicing over the next three years and USD 22.75 billion by 2033,” Shmyhal wrote on his Telegram channel.
According to him, this way, Ukraine will be able to free up resources for urgent needs: defense, social protection and recovery.
Prices of Ukraine’s Eurobonds jumped by an average of 13% over the past week and, taking into account the growth at the end of June, reached a new high for the period since the beginning of the full-scale Russian aggression.
According to Bloomberg data, last week the quotations of dollar Eurobonds ended in a range from 28.1% of the face value of the shortest securities maturing in September 2025 to 25.0% of the face value of the longest securities maturing in March 2035.
On average, quotations grew during the week by 3.1 percentage points rather evenly along the whole curve.
According to market participants, such a spurt could be caused by the positive reaction to the results of the NATO summit, as a few weeks ago – by the results of the Conference on the reconstruction of Ukraine in London and the rebellion of Prigozhin.
In addition, Ukraine’s GDP warrants also rose to a new military maximum last week – 42.6% of the nominal value, while a week ago they were given 39.3% of the nominal value, and several attempts to break through the 40% level were unsuccessful.
The government of Ukraine intends to extend the maturity of all Eurobonds by 24 months, as well as to defer the payment of interest income on them for the same period, the relevant Cabinet of Ministers Resolution No. 805 of July 19 was published on its website on Wednesday.
“Transactions with public debt in 2022 are carried out until August 15, 2022 by entering into the terms of the bond issue … in agreement with the bond holders …”, the document says.
According to it, “the maturity date of each bond (and for 2017 bonds ⸺ each maturity date of a portion of the 2017 bonds) is deferred for a period of 24 months from the respective final maturity date of the bonds.”
“All interest payment dates on post-deal bonds are deferred for a period of 24 months from each relevant interest payment date (and for 2018 Series 1 bonds ⸺ all interest payment dates on these bonds are deferred for a period from August 1, 2022 d.),” the resolution reads.
During these 24 months, interest income on the bonds continues to accrue at existing rates, and additional interest income is accrued on the amount of accrued basic interest income at the same rates.
“At any time during the specified delay, the total amount of accrued basic interest income and additional interest income (the amount of income of holders) on the basis of a separate decision of the Cabinet of Ministers of Ukraine may be paid to bondholders in part (or) in full,” the document says.
Likewise, at the end of the said deferral, the unpaid amount of the holders’ income at that time may be paid to the holders in full or by additional issue of the relevant bonds.
“The amount of income of holders is calculated by the Ministry of Finance, taking into account, in particular, information provided by business entities engaged by the Ministry of Finance to provide agency, advisory or other services in connection with transactions, and cannot exceed $ 3,000 million (together for all bonds paid in dollars USA) and 300 million euros (jointly for all paid in euros),” the resolution says.
