Prague is planning its first Eurobond issue in a decade, as the government’s austerity measures have boosted perceptions of the country’s creditworthiness. The city will offer €200m of debt in the first quarter as soon as it picks sales managers, Vladan Kubec, the head of strategy in the city hall budget department, told Bloomberg. Moody’s has given Prague an A1 rating, the same as the Czech sovereign debt. The yield on the country’s 2022 Eurobonds is currently at 2.83 percent. The Czech Republic raised €750m two weeks ago in a reopening of 10-year notes after austerity measures and improved sentiment across Europe helped push the yields down to 2.51 percent in the third quarter, according to Bloomberg. Proceeds from the Prague bonds will be used to finance road repairs and the metro expansion project.
