Vodafone Group said Wednesday it will buy back €806.5 million of its hybrid debt after a successful tender offer and now plans to redeem the remainder.
The British telecommunications company announced it would accept all tendered securities from its offer for €1 billion of capital securities due 2080, paying 100% of the principal amount plus accrued interest.
Because investors tendered more than 80% of the notes, exceeding a 75% threshold, Vodafone said it intends to exercise an option to redeem the remaining €193.5 million of the securities.
The transaction is expected to settle on Sept. 19, after which the purchased securities will be cancelled, the company said.
According to regulatory filings, the buyback is part of a broader strategy to proactively manage the company's hybrid capital portfolio.
The offer was conditional on a new debt issuance, a condition Vodafone met last week when it raised €1.4 billion in new hybrid notes.
Vodafone is also conducting a separate tender offer for $500 million of its U.S. dollar-denominated securities.
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