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'The total bond value is $3bn, so they have done a bit of can kicking moving a 2028 commitment to 2050.'
With current interest rates and 10% inflation it must make sense to both parties. Would need to roll over alot of more debt at higher coupons to impact the 50% debt less than 2% coupon due after 2030/2040. We also saw the cash tender for €2Bn this week which probably counts towards MDVs €1Bn cost reduction commitments over the next period. I expect the asset sale monies from hungary and vantage will cover the tender if not more.
Debt increase even with asset sales?
Last valued the bonds program on Sept 16th. Just updated the values based on those bonds listed on Vodafone website
16/9/22 FX adjusted to EUR, total €45.95bn
14/12/22 FX adjusted to EUR, total €49.06bn
An increase of €3.11bn. In that period FX rates have gone in Euro favour, so the real increase is larger.
New bonds issued are at higher coupons. In the US shelf for example, the $1bn bond due in sept with a coupon of 2.5% has been replaced by by 3 bonds totaling $3.75bn with coupons of 4.25, 4.875 and 5.125. Maturities for those extend beyond 2049, so high rates are getting locked in long term.
The movements around the $2.3bn of may 28 bond to be bought back is not incuded yet. It has a coupon of 4.375. The total bond value is $3bn, so they have done a bit of can kicking moving a 2028 commitment to 2050.
Broadsword to Danny boy
Dan, get yourself back here Amigo, the board has been taken over by a bunch of accountants who think they know how to run the company better than the current board of directors, well they could be right of course ?
If you and Mikey have just given up here, then god help the rest of us as another poster put's it
so come on Dan & Mikey we need your opinions here now
We have 'DYOR' & 'IMO' etc etc & now for 2023 we have 'GHUA', thanks PFen.
Seasons greetings to all the long suffering VOD holders & of course to all the new VOD holders (you will become long suffering here as well no doubt about that)
"God help us all"
https://www.youtube.com/watch?v=GzvdBSbFJnw
https://www.youtube.com/watch?v=_XeybpHLqJQ
Lol
Let’s hope your right about shares going down to 50p then I’m back in .
At sme point they will pay more interest on a ridiculous debt . I am sure the club running this joke won't stop payingoutbonyses, it will be paid for from dividends unless higher contract prices makes a difference but this will probably only cover increased costs such as payroll rents etc.
They are in a mess and given the talent running the company who have a great record of trying to talk up poor results, increase debt and drive down the share price who knows how long it will continue. Worst decision I have made was to touch this company. Averaged down hoping for a fightback but heading towards 50p soon if it cant gain support in high 80s. God help us all
If VOD keep the dividend where it is, I see this as a good punt. 9% yield with some capital upside in a few years, in a defensive sector. I have bought in here today, and feel like 86p is a bargain. Might go lower, might go higher, but can just tuck it away and forget it, unlike a lot of shares out there atm.
I’m thinking any lower and I’m in. I have set a buy for 84p
Topped up Monday £500 at 85.8p
Sparz, yes I think 20 years ago there was a 'cambridge blue ' regulatory culture ...and then prices declined into a fully competitive market.lol. At these low levels the guiding political authority in europe includes players such as Eva Kaili who was recently suspended from her position as European Parliament VP for corruption. I just hope her involvement with a ME state isnt a repeat of NMC or Finablr and the VOD/ E& development is a successful fusion of islamic finance and capitalism emerging from a chaotic market. The Africa model has plenty of evidence the build for the next phase represents the interests of each sovereign state, or housekeeping as an earlier post put it. I am positive long term..
Can't help but think this should be the low.. Having worked with them 20yrs ago and observed their level of arrogance and serious lack of self-awareness that got them into this position. I hope the new leadership can inspire them to evolve to anticipate their customers needs better..... Before its too late.
Heating up
:D
'paying down €2Bn debt due 2028'
4.375% for another 6 years suggests c€0.5Bn interest saved (and debt has been reduced).
nice choice Kwasi Kwarteng as FD, vod needs to go more in debt to grow.
How about Kwasi Kwarteng as FD?
Just heard they have managed to get Sam Bankman Fried on board.
@meshtrader
for you mate ..did you see ?
https://twitter.com/zerohedge/status/1602511820643860481
This is good news? paying down €2Bn debt due 2028 at a discount.
Good news for those calling for debt to be paid down early.
Have I misunderstood, sorry if so.
https://www.lse.co.uk/rns/VOD/vodafone-announces-early-results-of-tender-offer-yo0heanplg6ixc0.html
"The actual profit depends on the revenue they have lost compared with any gains they make from the £2B"
It's more complicated than that. Since Vodafone now owns 65% of Vodacom, Vodafone still indirectly benefits from the Egypt income via Vodacom. Vodafone has received €577 million in cash, so that immediately adds to Vodafone's top line. The €1.67 Billion in Vodacom new shares, could increase in value dependant on Vodacom's future earnings, with Vodacom likely to see growth going forward.