The energy company CEZ has issued so-called sustainable bonds worth 600 million euros (about 14.7 billion crowns). Bonds with an interest rate of 2.375 percent are associated with a commitment to reduce issues. If the company does not meet the obligation, the interest rate will increase by 0.75 percentage points. The company announced this on its website. The expected issue date is April 6. According to the HN.cz server, which drew attention to the information, European investors, for example from the United Kingdom, are interested in the issue.
CEZ’s sustainable bonds are due in 2027. If CEZ does not meet its greenhouse gas intensity target by December 31, 2025, the interest rate on the bonds will increase to 3.125 percent. “In Central and Eastern Europe, this is the first ever issue of sustainability-linked bonds issued by an investment-rated energy company,” CEZ said.
The leading managers of the issue are Barclays Bank Ireland, Citigroup Global Markets Europe, Deutsche Bank, Erste Group Bank and SMBC Nikko Capital Markets Europe. RaiffeisenBank International acts as the so-called co-lead manager.
CEZ announced last April that it would buy back its bonds issued in euros and US dollars for about CZK 12 billion. The company wanted to save on interest.
CEZ’s majority shareholder is the state, which holds about 70 percent of the company’s shares through the Ministry of Finance. CEZ’s net profit last year reached CZK 9.9 billion, up 81 percent year-on-year. On the other hand, after adjusting for extraordinary effects, profit fell by three percent year on year to CZK 22.3 billion.
Source: CEZ and CTK
