After a recent huge issue of CEZ bonds worth 600 million euros (approximately 14.7 billion crowns), another large domestic group threw its securities on the market.
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The Cetin Group, which provides telecommunications infrastructure in Central and Eastern Europe, has successfully placed a five-year priority Eurobond worth EUR 500 million (CZK 12.3 billion). This follows from the company’s regulatory announcements.
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“This inaugural issue of the infrastructure part of our telecommunications division has attracted great investor interest, despite the adverse circumstances of the war in Ukraine. As two years ago during the covid-19 crisis, we are reopening the market as the first private issuer from Central and Eastern Europe, “commented Kateřina Jirásková, CFO of the PPF Group.
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The bond matures on April 14, 2027 and carries a fixed annual coupon of 3.125 percent. Demand for bonds almost doubled supply. The issue was bought by large institutional investors and asset managers from the United Kingdom, the Benelux, France, Germany, Austria, Switzerland and the Nordic countries.
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Cetin Group
- In addition to the Czech Republic, the group operates in Bulgaria, Hungary and Serbia, and employs 3,000 people.
- As of March 31, 2021, the Cetin Group was the largest provider of telecommunications infrastructure in the Czech Republic with a 34% market share and the second largest provider in Hungary, Serbia and Bulgaria, with 28% market share, 30% market share and 32% market share. market.
- The company’s asset portfolio includes approximately 11,200 locations, including 3,400 towers, 13,700 presence points and 69,700 kilometers of fiber optic cables.
- Daily traffic on mobile networks is 2.6 petabytes.
- In addition, Cetin CZ provides fixed access network services, which are passed through 3.9 million households through the recently modernized FTTC network and another 0.2 million households with ADSL network and 105 thousand households with FTTH technology: this represents 85 percent of all households in the Czech Republic. Republic.
- The capacity of the 69,700-kilometer backbone optical and aggregation network allows us to offer nationwide coverage through a combined offering of site hosting, an active radio access network, and backhaul and transport connectivity.
- Assets at the end of 2020 amounted to 2.3 billion euros. EBITDA then 333 million euros.
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Sustainable CEZ
According to Cetin CEO Juraj Šedivý, the company will use “all net bond yields to refinance existing bank loans of the Cetin Group”. More than ten international banks participated in the issue and sale of bonds.
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The CEZ energy group issued an even larger bond issue a few days ago. It will use the bonds with an interest rate of 2.375 percent for investments associated with reducing greenhouse gas emissions. If the company does not meet the obligation, the interest rate will increase by 0.75 percentage points.
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CEZ’s sustainable bonds are due in 2027. “In Central and Eastern Europe, this is the first issue of sustainability-related bonds issued by an energy-rated energy company,” CEZ said.
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While the majority shareholder of ČEZ is the state, which holds about 70 percent of the company’s shares through the Ministry of Finance, in the case of Cetin it is the first such large bond issue of a purely private company in Central and Eastern Europe since the beginning of the Russian invasion of Ukraine.
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