Vodafone Ukraine pays $12.4 mln in Eurobond interest

MOSCOW. Aug 19 (Interfax) - Vodafone Ukraine (VF Ukraine), the second largest mobile operator in the country, has announced another Eurobonds interest payment of $12.4 million.

"The payment was made from the company's onshore (Ukrainian) bank account, which was possible owing to the latest forex control liberalization allowing trans-border payments for debt servicing," Ukrainian media reported quoting the company as saying on its website.

VF Ukraine said that, despite the complicated operational and financial situation caused by the crisis, it is continuing to service its debt in full.

The company pointed out that the debut five-year Eurobonds were placed for $500 million at 6.2% in February 2020, with coupon yield paid semi-annually. Eurobonds worth $400 million are currently in circulation.

As reported, the Ukrainian government requested that the National Bank of Ukraine (NBU) allow the selling of foreign exchange to major Ukrainian companies and holdings to use it for Eurobond settlements with their Western creditors. The list of companies included VF Ukraine, companies incorporated in Interpipe Group, a manufacturer of steel pipes and railway wheels, Metinvest, a major mining holding, the Kernel agricultural holding, and three holdings incorporated in DTEK, i.e. DTEK Energo, DTEK Renewables, and DTEK Oil&Gas.

However, the NBU did not grant the requests, while relaxing forex restrictions in May and July to ease the servicing of corporate Eurobonds, while their redemption remains a problem.