NET4GAS continues to optimise its capital structure on the back of low interest rates
NET4GAS has taken advantage of the favourable financial market conditions and, drawing on low interest rates, has refinanced part of its bonds worth CZK 2.646 billion due in 2021. The new CZK bond issue matures in 2025 and bears an annual fixed coupon rate. The transaction has not changed the amount of the company’s debt.
“By this transaction, NET4GAS has reduced the risk of its future refinancing needs and secured a long-term resource for its planned investment projects,” said Václav Hrach, CFO of NET4GAS.
Česká spořitelna, a.s. acted on the transaction as the sole Dealer Manager. The exchange and tender offer liability management used by NET4GAS has represented unique and innovative structure as it has exchanged part of the outstanding bonds issued under the EMTN programme and listed on the Irish Stock Exchange into the new bond issued under the Czech law and listed on the Prague Stock Exchange. The transaction resonated well with investors, as existing bondholders representing almost 38% of the old issue volume used the opportunity to extend their exposure on NET4GAS. This is a percentage well above the benchmark considered as successful for such type of transaction.