Vodafone Ukraine has announced a new tender to repurchase its eurobonds in the amount of $1.185 million, which is approximately equivalent to $1.2 million. Ukraine’s second-largest mobile operator, which officially operates as VF Ukraine (VFU), is prepared to purchase the securities at 98% of their nominal value. Information about the buyback was published on the Irish Stock Exchange, where the bonds are listed. Applications from bondholders will be accepted until February 17, with settlement expected to be completed no later than February 24.
The latest buyback is directly linked to dividend payments to the shareholder outside Ukraine. On February 3, the company made its regular monthly dividend payment of UAH 50.9 million, in line with the current restriction imposed by the National Bank of Ukraine on cross-border payments—equivalent to €1 million per month. Under the terms of the eurobond issuance, any dividend payment abroad requires the issuer to offer bondholders a repurchase of securities in an amount equivalent to the dividend paid, which triggered the announcement of the new tender.
The buyback relates to VFU eurobonds maturing in February 2027 with a coupon rate of 9.625% per annum. The total size of this bond issue is $300 million. Since the end of May, Vodafone Ukraine has conducted six similar tenders and has cumulatively repurchased eurobonds worth around $20.4 million. Following these transactions, approximately $279.182 million of the bonds remain outstanding.
To service its eurobond obligations and finance partial buybacks, the company has attracted debt financing from related entities, including Telco Investments B.V. and Cemin B.V. These loans were provided at an interest rate of 10% per annum, reflecting the cost of capital for Ukrainian companies amid limited access to international capital markets.
Vodafone Ukraine’s financial performance supports this debt and dividend policy. For the first nine months of 2025, the company’s net profit increased by 10.7% to UAH 3.45 billion, while revenue rose by 13.3% to UAH 19.03 billion, indicating stable business growth and the company’s ability to meet its obligations to investors and shareholders.
