Czech Railways to issue record volume of bonds to date
The issue will be used to refinance old bonds and to invest in rolling stock.
Ceske drahy (CD – Czech Railways) is preparing a record bond issue for June. The total volume is expected to exceed EUR 550 million, Michal Krapinec, the new chairman of the board and CEO of Czech Railways, told CEETransport.com.
The issue will serve to refinance a 2016 EUR 400m bond issue due next May. The proceeds will also be used for investments. For the first time, Czech Railways will offer ESG bonds. The expectations of future bond holders in terms of sustainability will be bank-monitored.
Mr. Krapinec expects the carrier to reach a lower interest rate on the green bonds than on the conventional ones, although not lower than the 2016 issues with an interest rate of 1.875 percent.
The net debt of the joint-stock company currently amounts to CZK 31.67 billion (cca EUR 1,3 billion). Over the next ten years, the railways intend to invest around CZK 100 billion (cca EUR 4 billion) in rolling stock.