Vodafone Ukraine Announces New Bond Repayment Terms
"Vodafone Ukraine" has reached an agreement with its eurobond holders regarding $399.88 million to postpone repayment for two years, now due on February 11, 2027. The company proposed a partial repayment of $99.88 million plus accrued interest, raising the coupon rate from 6.2% to 9.6% and offering a 2% reward on the nominal value.
This decision was made during the bondholders' meeting on February 5, as reported by "Interfax-Ukraine".
"Consequently, the documentation for the amendments has been signed and will take full effect upon receiving a notification from the NBU, expected around February 6, 2025. The payment date is anticipated to be approximately February 11, 2025", the exchange information states.
Previously, this proposal was agreed upon with a special committee representing 31% of the bondholders and other holders who collectively owned 49% of all bonds.
The company made this request to its eurobond holders due to restrictions imposed by the National Bank of Ukraine after the onset of Russia's full-scale aggression: while the company has the necessary hryvnias domestically, it cannot purchase foreign currency for bond repayments abroad.
Meanwhile, after some easing of these restrictions, "Vodafone Ukraine" can service the interest payments on the eurobonds.
Reminder:
Vodafone reported a further decline in revenues in Germany, its key market, which has become a weak spot amid growth in the UK, Turkey, and Africa.
