Vodafone Ukraine (VFU), Ukraine’s second-largest mobile operator, which has repurchased its own Eurobonds worth almost $7 million since the end of May as a result of three offers in connection with the payment of dividends, has announced for the third time an increase in the redemption price in the fourth such tender — to 94% of the nominal value compared to 92% a week earlier, 90% at the end of August, and 85% in the initial offer on August 13.
As noted in the company’s announcement on the Irish Stock Exchange, the maximum repurchase amount remained at $5.12 million, up from $3.945 million the week before last.
The deadline for accepting applications has been extended from September 18 to September 25, and settlements are now scheduled for approximately October 2.
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 par value, the second at 90% of par 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 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. Since then, five monthly dividend payments have been made, each equivalent to approximately EUR 1 million.
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.
