Čupr issues additional bonds and establishes a fund together with J&T. Tempting for bonuses – List of News

Tomáš Čupr issues bonds with a total value of three billion crowns through the company Rohlik.cz Finance II, which is under Roll.cz Investment. The total amount of the case can be increased to 4.5 billion crowns.

The bonds mature at the end of 2029 and offer an annual yield of six percent. If the value of the Rohlík group reaches 3.5 billion euros at maturity or earlier, the group will pay a special price to investors of 27.5 percent of the nominal value of its bonds. If the value is between 2.5 and 3.5 billion euros, the amount of the bonus will be 25 percent. If the value was below 2.5 billion euros, investors would receive a bonus of 20 percent when it is paid back.

“The current issue follows on from two very successful previous cases, when the bonds were literally removed. Investors finally bought them in just 48 hours,” said Tomáš Čupr in a press release.

“I believe that Rohlík is worth more than 10 billion euros, because I am in that business personally. And since the previous issues were sold out within two days, I believe it will be scarce now,” said Čupr. According to him, the group will use the capital which was acquired to refinance its obligations, create operating resources and, above all, for further development, including significant expansion in foreign markets.

Cyrrus portfolio manager Tomáš Pfeiler told Hospodářské noviny that if the amount of the maturity bonus is also included, the yield on the bonds is attractive.

“According to Czech standards, this is not a completely normal structure of coupon payment. The investor participates at least partially in valuing Rohlík’s equity, which is meaningful. Such a coupon structure also makes sense for the issuer – free cash flow is under pressure right now, so it will welcome lower coupon payments,” Pfeiler said of the issue.

At the same time, Čupr and J&T Bank are establishing a new investment fund, Rohlik Growth SICAV, through Rohlik Investment. This will primarily focus on Rohlik Group shares.

Tomáš Čupr will hold 50.01 percent in the fund, while J&T will own 49.99 percent. Čupr plans to transfer up to 47,000 Rohlik Group shares to the fund, which is equivalent to a share of up to 7.9 percent of the company’s share capital. J&T plans to add up to 23,000 Rohlik Group shares, representing up to four percent of the group’s share capital.

“It’s only right that we make a piece of equity available to a wider group of investors. In addition, they have the opportunity to remove a significantly higher yield in the fund, compared to bonds, from the real value of the Rohlik Group or from the last Rohlik entry to the stock exchange or exit. So in the end it can earn them maybe 20 percent,” says Tomáš Čupr.

The total value of the fund will exceed 120 million euros, ie more than three billion crowns. Investors will be able to choose from three categories of investment shares, with an expected annual return of between 15 and 20 percent.

“Tomas and I have been living the story of Rohlík’s investment for many years. Our decision to give our share to a mutual fund in particular is a public confirmation of our belief that Rohlík is well positioned for great success not only in Germany. Thanks to the fund, participation in the extraordinary rise of the Czech company is now open to a wider range of investors,” says Štěpán Ašer, CEO and Chairman of the Board of Directors of J&T BANKA.