Ukraine’s second-largest mobile operator, Vodafone Ukraine (VFU), which on May 23 announced an offer to repurchase its Eurobonds worth $1.11 million, has received bids significantly exceeding the repurchase amount.
“The offered bonds will be accepted for purchase on a pro rata basis in accordance with a scaling factor of 0.0040355668,” the issuer said in a statement on the Irish Stock Exchange on Monday.
According to the statement, if the application of this ratio to the bond package of any holder results in an amount less than the minimum nominal value, such offered bonds will be rejected.
The settlement date for the tender offer will be approximately June 13, 2025.
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 EUR1 million in hryvnia.
The company emphasized that, according to 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.
According to the announced terms, the bonds will be redeemed at a rate of 99% of their face value.
VFU 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.
