Vodafone Ukraine receives almost 250 times more applications for eurobond redemption offer worth $1.1 mln

The second largest Ukrainian mobile operator "Vodafone Ukraine" which announced an offer to redeem its eurobonds for $1.11 million on May 23, received applications that significantly exceeded the specified redemption amount.

"The offered bonds are accepted for purchase on a proportional basis in accordance with a scaling factor of 0.0040355668," the issuer said in a statement to the Irish Stock Exchange on Monday.

According to it, if the result of applying such a coefficient to the bond package of any owner is an amount less than the minimum nominal value, then such proposed bonds are rejected.

The settlement date for the tender offer will occur approximately on June 13, 2025.

The redemption of eurobonds is due to the fact that on April 24, 2025, Vodafone Ukraine 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 notification) for 2024. In accordance with 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 an amount in hryvnias equal to EUR 1 million.

The company said that, according to the terms of the bond issue, in such a 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 are redeemed at a rate of 99% of the nominal value.

Vodafone Ukraine said that a total of $300 million in bonds with maturity in February 2027 and a nominal rate of 9.625% per annum were issued, of which the company currently holds bonds for $500,000.

As reported, Vodafone Ukraine increased revenue by 13.1% in 2024, to UAH 24.44 billion, reducing net profit by 30.1%, to UAH 3.54 billion.

In January-March 2025, revenue increased by 14% compared to the same period in 2024, to UAH 6.59 billion, while net profit fell by 24%, to UAH 697 million.