Company Announcement

Vodafone Ukraine (Ticker: VODUKR, “VFU”) hereby announces that during the period 19-30 September 2024 it engaged in restructuring negotiations with several major holders of the 6.20 per cent Notes due 2025 issued by the Issuer for the sole purpose of financing a loan to VFU (the “Notes”). Amidst the continuing capital controls restrictions that remain in place in Ukraine (the “Capital Controls”) which currently prevent VFU from making cross-border payments out of Ukraine to repay the Notes, VFU presented a restructuring proposal to such major holders and subsequently negotiated potential amendments comprising of the following key terms: (i) the extension of the maturity date of the Notes by three years, (ii) the inclusion of a new mandatory prepayment provision requiring repayment of the Notes promptly in the event of the relaxation of current Capital Controls, (iii) an increase of the interest rate of the Notes to 7.7%, (iv) a pledge over VFU’s cash balances held in Ukraine for the purpose of repaying the Notes, and (v) the payment of a consent fee of 1.5% (the “Restructuring Proposal”). However, following negotiations, the Restructuring Proposal was rejected by bondholders holding approximately 31% of the Notes.

In light of the above, VFU hereby announces that it does not, in the absence of changes to the Capital Controls, expect to engage in further negotiations with the bondholders. Instead, VFU will focus on other avenues for addressing its obligations under the Notes, namely continuing its discussions with the relevant authorities in Ukraine, including the National Bank of Ukraine, on granting an exceptional approval for the payment of the Notes’ principal due on 11 February 2025.

VFU hereby confirms that, while it is currently prevented by the Capital Controls from making cross-border payments out of Ukraine to facilitate the repayment of the Notes, its financial position remains strong and it has sufficient liquidity to satisfy its payments obligations within Ukraine as they fall due for the foreseeable future.

For further information, please contact:

Investor Relations 

ir@vodafone.ua