The CZECHOSLOVAK GROUP holding has granted a mandate to a consortium of banks – Česká spořitelna and UniCredit Bank Czech Republic and Slovakia – for an offer to exchange the Group's bonds in the volume of CZK 2.1 billion, with a maturity date of December 16, 2021.
The Group also mandated a consortium of banks – Česká spořitelna, Komerční banka, UniCredit Bank Czech Republic and Slovakia – to place a new issue of five-year senior bonds in the volume of CZK 1.5 billion with a possible increase to CZK 2 billion. The CZECHOSLOVAK GROUP has also obtained regulatory approval to make a public offering in the Czech Republic and will apply for admission of the bonds to be traded on the Prague Stock Exchange.
Andrej Čírtek, the spokesperson of the CZECHOSLOVAK GROUP (CSG), says: „To us, the bonds are not only an important financing tool, but serve also as an important feedback on how the financial market perceives our group's business. As a bond issuer, we need to comply with the requirements of total financial transparency and of continuous discloser of important information about our business development.“
The bond issue proceeds are intended for the development of the civil part of the group's business and will not be used for activities in the defence industry. The CSG holding business is highly diversified. In addition to the Land Systems division, which focuses on defence-related production and trade in vehicles and ammunition, the Aerospace division is rapidly developing, including radar production, civil aircraft servicing and aviation training.
Another growing pillar of CSG is railway related, that includes Europe's leading manufacturer of brake systems for rail vehicles – DAKO-CZ. Since August this year, thanks to the lease of the Heavy Machinery Services wagon works in Louny, it has successfully become a producer and repairer of railway cars.
Financial results of CSG in 2018
The CSG holding achieved revenues of CZK 11.5 billion and EBITDA of CZK 1.9 billion in 2018. Both indicators grew by almost half year on year. „It was the key companies which provide services in the fields of aviation and aviation training, special land vehicle production, radar production, and brake system production for rail vehicles that contributed significantly to the growth in financial results," says the CSG owner Michal Strnad.
The key companies of the group that achieved significant growth in terms of financial results include the following: ELDIS Pardubice, EXCALIBUR ARMY, TATRA DEFENCE VEHICLE, DAKO-CZ, Czech Aviation Services), as well as the Slovak part of the holding belonging to the MSM GROUP.
