NET4GAS Has Executed a CZK Dual-Tranche Bond Offering


NET4GAS has utilised favourable market conditions and on 18 January 2021 successfully launched a CZK-denominated bond offering in an aggregate volume of CZK 10.998 billion. The dual-tranche transaction consists of a 7-year bond in the volume of CZK 4.098 billion paying a floating rate coupon of 6M PRIBOR plus 0.95% (paid semi-annually) and a 10-year bond in the volume of CZK 6.900 billion bearing a fixed annual coupon of 2.745%. The 10-year tranche represented the longest tenor achieved on the Czech crown (CZK) market in the most recent decade.

“The granular, high quality of investors and largest ever CZK-denominated bond supported by an order book of over CZK 18 billion shows investors’ trust in NET4GAS’s credit and business model. By launching the bond, we continue to maintain our capital structure based on conservative and prudent business assumptions, which are also in line with our investment grade ratings of Baa2 by Moody’s and BBB by Fitch,” said Václav Hrach, CFO of NET4GAS.

The order book was dominated by banks, asset managers (investment/pension funds) as well as insurance companies (for the 10-year tranche).

The transaction was arranged and lead managed by Česká spořitelna as Coordinator and Active Bookrunner, Komerční banka as Active Bookrunner, and Československá obchodní banka as Passive Bookrunner. 

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