Czech energy group CEZ today issued bonds worth EUR750m (Kc19.1bn) with a yield of 0.875 percent, maturing in 2026, CEZ spokesman Ladislav Kriz said. CEZ will use the money for financing, including refinancing of an old debt, the company said.
CEZ said it was this year's lowest interest rate on euro bonds issued by entities in Central and Southeast Europe, and the lowest one on euro bonds issued by companies in Central and Southeast Europe with a maturity of five or more years.
The issue managers are Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited, Deutsche Bank Aktiengesellschaft and HSBC France.
"Despite the low yield, the demand for the issue was very high. Before the announcement of the final price, potential buyers were willing to buy three times more, for a total of EUR2.75bn (about Kc70bn). This is the biggest amount for an issue made in Central and Southeast Europe this year," CEZ board chairman and CFO Martin Novak said.
CEZ, the largest Czech energy company, is 70 percent owned by the state via the Finance Ministry.
In the first three quarters of this year, CEZ's net profit rose by about 50 percent to Kc13.6bn and it sales grew by 12 percent to Kc148.1bn. The firm benefited mainly from growing electricity prices and higher income from trade in commodities.