Ukraine’s second-largest mobile operator, VFU (Vodafone Ukraine), has announced a second offer to redeem its Eurobonds worth $1.14 million in connection with the company’s second monthly dividend payment to shareholder Telco Investments B.V. in the amount of UAH 47.503 million on June 3 this year and significantly reduced the redemption price.
As the company explains in a stock exchange announcement, according to changes made by the National Bank of Ukraine on December 21, 2024, it is now permitted to pay dividends abroad on a monthly basis in an amount not exceeding EUR 1 million per month.
Accordingly, on April 24, 2025, VFU announced the payment of dividends to its shareholder in the amount of UAH 660.245 million for 2024 and intends to pay them in separate monthly dividend payments. Each such monthly dividend is expected to amount to the equivalent of EUR1 million in hryvnia. In May, the company paid UAH 46.092 million, or the equivalent of $1.11 million.
The company reiterated that, in accordance with the terms of the bond issue, it must offer all bondholders the opportunity to sell their bonds for an amount equal to the dividends paid outside Ukraine.
According to the announced terms, the bonds are redeemed at 90% of their face value, while the initial offer was at 99% of their face value, and the company received almost 250 times more applications than the maximum redemption amount.
VFU recalled that a total of $300 million worth of bonds maturing in February 2027 with a nominal rate of 9.625% per annum were issued, of which $298.955 million are in circulation, and the company currently holds $0.5 million worth of bonds.
Applications for participation in the redemption are accepted until July 2 inclusive.
As reported, VFU increased its revenue by 13.1% to UAH 24.44 billion in 2024, 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.
