Vodafone Ukraine (VF Ukraine PrJSC, Kyiv), Ukraine's second-largest mobile operator, fully owned by the NEQSOL holding, could receive up to $350 million in direct financing from the U.S. International Development Finance Corporation (DFC) and use it to refinance existing debt, according to DFC materials.
"Support will be provided through the refinancing of existing debt, which will allow the borrower to redirect cash that would otherwise be reserved for debt repayment toward the procurement of equipment from vetted suppliers worth at least $350 million over the first five years of the loan term," the materials state.
The project, approved by the DFC's board of directors on Sept 16 this year, is meant to support the uninterrupted operation and resilience of Ukraine's telecommunications infrastructure, as well as enable Vodafone Ukraine to continue operations, meet its foreign debt obligations, and make capital investments amid the full-scale invasion.
The company itself has so far only confirmed that the DFC has approved the loan.
"The financing is expected to allow Vodafone Ukraine to redirect its own spending toward capital investment. The loan remains subject to approval and the signing of the relevant documentation. The company will separately announce the conclusion of binding contractual documents and the receipt of the loan funds," the company said in a statement on its website.
As previously reported, Vodafone Ukraine agreed with holders of its nearly $400 million in eurobonds in February 2025 to postpone repayment by two years, to Feb 11, 2027, offering to partially repay nearly $100 million plus accrued interest, raise the coupon rate from 6.2% to 9.625%, and pay a fee of 2% of face value.
Since the end of May 2025, in connection with dividend payments for 2024-2025, the company has been buying back eurobonds in a volume equivalent to about EUR 1 million per month. After the completion of the 12th such buyback, the volume of bonds outstanding will fall to approximately $270 million.
VF Ukraine PrJSC increased its consolidated net profit by 14.2% year-on-year in January-June 2026 to UAH 1.9 billion, while revenue rose 10.6% to UAH 14.9 billion.
The mobile operator's customer base stood at 15.1 million in the second quarter of 2026, with the number of contract subscribers growing to 3.3 million.
The company said it invested more than UAH 3.5 billion in restoring and developing telecom infrastructure in the first half of 2026, matching the level seen in the first half of 2025. Among other results, the operator highlighted continued testing of 5G technology, with initial coverage zones available in Kyiv, Lviv, Kharkiv and Boro dianka, and recently announced open 5G testing in Odesa as well.
