Ukraine’s second-largest mobile operator, VF Ukraine (Vodafone Ukraine, VFU), which has repurchased about $22 million of its own eurobonds across seven offers since late May last year in connection with dividend payments, again saw demand significantly exceed supply in its eighth such tender.

"As the aggregate principal amount of bonds tendered exceeded the tender offer amount, the submitted bonds will be accepted for purchase on a pro rata basis in accordance with a scaling factor of 0.0333333," the company said in a stock exchange filing.

This time, VFU again sought to repurchase $1.18 million worth of bonds, as in the previous tender, but demand was significantly lower then, the scaling factor stood at 0.3246, although the buyback price was the same at 98% of par.

The bonds, maturing in February 2027 with a nominal coupon rate of 9.625% per annum, were issued for $300 million. Their repurchase is linked to the company’s April 24, 2025 announcement of dividend accrual to its shareholder in the amount of UAH 660.245 million ($15.9 million at the exchange rate specified in the announcement) for 2024. Under National Bank restrictions, the dividends are to be paid in separate monthly installments. Each such monthly dividend is expected to equal the hryvnia equivalent of EUR 1 million. The company emphasized that under the bond terms, in such a case it must offer all bondholders the option to tender their bonds for an amount equal to the dividends paid abroad.

In the first two tenders, Vodafone Ukraine repurchased bonds in amounts equivalent to EUR 1 million. The debut buyback was announced at 99% of par, and the second at 90% of par. The company did not disclose the results of the second buyback on the exchange, while the scaling factor for the first stood at 0.0040355668.

Following the third tender, where the buyback price was reduced to 85% of par and the offer capped at $4.67 million, Vodafone Ukraine received bids totaling $53.395 million and satisfied them in the amount of $5.208 million. The scaling factor was 0.1315451889487317.

The fourth tender was announced on August 13 but was subsequently extended seven times. The buyback price was eventually increased from 85% to 98%, and the total repurchase amount raised to $10.84 million. Against this, the company received bids totaling $127.14 million. Some bonds were returned to holders due to the inability to split denominations, while the rest were accepted with a scaling factor of 0.1150681.

In the fifth, sixth, and seventh tenders held in December, January, and February, respectively, the price again stood at 98%: in the fifth, with an offer of $1.165 million, the scaling factor was 0.01901; in the sixth, with an offer of $1.475 million – 0.04234; and in the seventh, with an offer of $1.185 million – 0.3246.

Overall, following the seven tenders, the total nominal value of bonds remaining outstanding stands at $277.98 million.

As reported, VFU increased its net profit by 10.7% to UAH 3.4468 billion in the first nine months of 2025, while revenue rose by 13.3% to UAH 19.03 billion.

The report noted that to service and repurchase eurobonds, the company obtained loans from related parties in 2025. In February, its parent company Telco Investments B.V. provided $49.59 million for partial repayment of eurobond debt. In June, VFU signed an agreement with Telco Investments for a U.S. dollar credit line equivalent to UAH 660 million at 10% per annum, maturing in 2028.

Finally, in July 2025, the company entered into a loan agreement with the Dutch company Cemin B.V. for $10 million at 10% per annum, repayable no later than the end of 2027 but not earlier than the redemption of the eurobonds. The funds are disbursed in tranches to the company’s account at a foreign bank and are intended for bond buybacks, which Vodafone Ukraine is carrying out in connection with the resumption of dividend payments this year.