DFC loan for Vodafone Ukraine could reach $350 mln, may go toward debt refinancing

Vodafone Ukraine, the second-largest mobile operator in Ukraine owned by NEQSOL holding, might receive up to $350 million in direct financing from the U.S. International Development Finance Corporation (DFC). This money could be used to refinance existing debt, freeing up cash to invest in new equipment worth at least $350 million over the first five years.

The DFC approved the loan on September 16, 2023, with the goal of supporting Ukraine's telecommunications infrastructure and helping Vodafone Ukraine continue operations, meet foreign debt obligations, and make capital investments during the ongoing invasion. The company has not yet confirmed the loan details but expects to announce the signing of binding contracts and receipt of funds soon.

Vodafone Ukraine recently agreed to delay repayment of $400 million in eurobonds by two years, repaying a smaller portion plus interest, raising the interest rate, and paying a fee. Despite challenges, the operator reported a 14.2% increase in net profit and a 10.6% rise in revenue in the first half of 2026, while investing over UAH 3.5 billion in telecom infrastructure restoration and development.