"Vodafone Ukraine has agreed to postpone the repayment of eurobonds for two years."

A special committee representing 31% of bondholders, along with other stakeholders who own 49% of all bonds, has already approved this proposal.

https://mind.ua/news/20284859-vodafone-ukrayina-pogodiv-vidterminuvannya-pogashennya-evrobondiv-na-2-roki2025-02-08 07:20:22

The second-largest domestic mobile operator, "Vodafone Ukraine," has reached an agreement with bondholders for a two-year extension on the repayment of eurobonds in exchange for an increased interest rate and partial early repayment.

This information is reported on the Euronext exchange website.

The company has agreed with the holders of its eurobonds totaling $399.88 million to postpone their repayment until February 11, 2027, offering to partially repay $99.88 million plus accrued interest, raise the coupon rate from 6.2% to 9.625%, and pay a fee of 2% of the nominal value.

The decision was made on February 5.

As written by "Interfax-Ukraine," the company reached out to its eurobondholders due to restrictions imposed by the National Bank of Ukraine following the onset of the full-scale aggression by the Russian Federation. Although the company has the necessary hryvnias within the country, it cannot purchase foreign currency for the repayment of bonds abroad. However, following some easing of these restrictions, "Vodafone Ukraine" is able to service the interest on its eurobonds.

In January to September 2024, the company achieved a 13% increase in revenue to UAH 18.1 billion and a 6% growth in operating profit to UAH 9.6 billion, although net profit fell by 23% to UAH 2.9 billion, mainly due to currency fluctuations. Its customer base grew by 4.7% to 15.9 million, and ARPU increased by 8.9% to UAH 122.4 per month, the agency notes.

It is reported that with the support of its shareholder, "Vodafone Ukraine" has accumulated $53.5 million in its offshore bank account, and this amount may be increased thanks to a loan from its shareholder Telco Investment BV of $53.5 million. Over the two-year extension, "Vodafone Ukraine" intends to accumulate sufficient funds outside of Ukraine to fully repay the eurobonds.

Background. Earlier, Mind reported that the company "Vodafone Ukraine" faced difficulties in its attempts to restructure eurobonds worth $400 million.