April 23, 2018 | Cbonds
Natalia Shevchenko, Financial Director of Vodafone Ukraine:
1. This is the first entry of Vodafone Ukraine into the public debt market. Why did the company decide to place Eurobonds right now?
The attraction of financing through the issue of Eurobonds during this period is associated with the payment terms for a license for 4G frequencies and expenses for the building of a 4G network.
2. Why was the private issue carried out?
There are several reasons for this. The amount of financing is insufficient for external investors to enter into the open market for Eurobonds, a limited time period for the preparation of the company's audited financial records under International Financial Reporting Standards (IFRS) and a limited period for the issue of Eurobonds associated with the established deadline for the payment of the license for 4G frequencies.
3. Neither the companies, nor the Eurobond received ratings from international rating agencies, and the placement was carried out without attracting any investment banks. Is this because of the pre-formed pool of potential buyers or the need to place papers as soon as possible?
The company was faced with the task of placing papers as quickly as possible.
4. Who acted as an investor?
International investment funds.
5. The coupon rate of 9.2% is quite high for securities in EUR. Is there a feeling that the company "overpaid," especially since the securities are covered, and the company has good financial performance?
No, compared to the price of attracted financing in Ukraine and taking into account the country's rating, the amount of Eurobond issue and shortened term of issue.
6. Is Vodafone Ukraine planning any public issues of domestic bonds or Eurobonds?No, not at the moment.
|Status||Country of risk||Maturity (option)||Amount||Issue ratings (M/S&P/F)|
Company: Vodafone Ukraine
|Full company name||Vodafone Ukraine|
|Country of risk||Ukraine|
|Industry||Information and High Technologies|