Vodafone Ukraine announces another buy-up of eurobonds for almost $4 mln
Vodafone Ukraine (VFU), the second-largest Ukrainian mobile operator, has announced the fourth tender offer at a price of 85% of the nominal value, worth a total of $3.945 million. This offer is in connection with the payment of dividends, based on the results of three offers, and VFU has bought back its own eurobonds worth almost $7 million since the end of May.
According to a report on the Irish Stock Exchange, before that, on August 1, the company made the fourth tranche of dividend payments in the amount of UAH 47.749 million, which is equivalent to the monthly ceiling of such payments set by the National Bank of Ukraine in EUR 1 million.
Applications for the fourth tender for the redemption of bonds are accepted until August 28 inclusive, and settlements are planned for approximately September 4.
As reported, according to the results of the previous tender, where the redemption price was also 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 for $5.208 million.
After the cancellation of the redeemed bonds, the total nominal value of the bonds remaining in circulation is $292.532 million.
The first two times, Vodafone Ukraine redeemed bonds for the equivalent of EUR 1 million. The debut redemption was announced at a price of 99% of the nominal value, the second - 90% of the nominal value. The company did not announce the results of the second redemption on the stock exchange, while the scaling factor of the first redemption was 0.0040355668, and during the third - 0.1315451889487317.
The redemption of eurobonds is due 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 notification) 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 an amount in hryvnias equal to EUR 1 million.
The company emphasized that under 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.