Ukraine’s second-largest mobile operator, Vodafone Ukraine (VFU), has announced a proposal to buy back its Eurobonds worth $1.11 million in connection with the company’s first monthly dividend payment to shareholder Telco Investments B.V. in the amount of UAH 46.092 million on May 14 this year.
As the company explained in a stock exchange announcement on Friday, 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 ($15.9 million at the exchange rate specified in the announcement) 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.
The company emphasized that, in accordance with the terms of the bond issue, in such a case it must offer all bondholders the opportunity to apply for the sale of their bonds for an amount equal to the amount of dividends paid outside Ukraine.
According to the announced terms, the bonds will be redeemed at 99% of their face value.
VFU recalled that a total of $300 million worth of bonds maturing in February 2027 with a nominal interest rate of 9.625% per annum were issued, of which the company currently holds $0.5 million worth of bonds.
Applications for participation in the buyback will be accepted until June 6 inclusive.
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.
