Vodafone’s $2 Billion Hybrid Bond Offering

April 4, 2019

Cleary Gottlieb represented the underwriters, BofA Merill Lynch, RBC Capital Markets, BNP Paribas, HSBC, and Standard Chartered, in a U.S. dollar-denominated hybrid bond offering by Vodafone Group plc (Vodafone).

The $2 billion offering, an SEC-registered takedown off Vodafone’s U.S. shelf registration statement, priced on March 28, 2019, and closed on April 4, 2019. The hybrid bonds will mature in 2079, are deeply subordinated, and bear interest at an initial fixed rate of 7% per annum, payable semi-annually in arrears until April 4, 2029, with interest to be periodically reset at fixed rates thereafter. Interest payments are subject to potentially unlimited deferral at the option of the issuer. The securities are to be listed on the New York Stock Exchange. The proceeds of the offering are expected to partially finance Vodafone’s acquisition of Liberty Global’s operations in Germany, the Czech Republic, Hungary, and Romania.

Vodafone is one of the world’s largest telecommunication companies and provides a range of services, including voice, messaging, data, and fixed communications. It has mobile operations in 25 countries, partners with mobile networks in an additional 46 countries, and fixed broadband operations in 18 markets.