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.
