Back
CEZ Hungary News CEZ Group Great demand of investors for CEZ eurobonds

2006. 10. 11.

Great demand of investors for CEZ eurobonds

Last Friday CEZ set the price for its seven-years issue of eurobonds with a 4.125 % coupon. Deutsche Bank and Societe Generale are the main managers of the issue.

Before the price was set, CEZ reperesentatives went on their roadshow to Paris, London, Viena and Frankfurt. According to Petr Voboril, director of CEZ finance division, inverstors took enormous interest in the issue. The demand totalled 2bn EUR, which was 4 times more than the volume of the issue of 500m EUR.

The high demand enabled us to reduce the price to final 41 basic points over the mid-swap referential rate with a 4.125 % coupon. The date of issue has been set on October 17, 2006, added Petr Voboril.

S&P rating agency gave the issue of eurobonds rating A- with stable outlook, Moody´s rated it A2 with stable outlook as well.

The issue of eurobonds of CEZ has been the most successful transaction in Central Europe this year and the largest-ever issue of a power company in this region.

This is the fourth CEZ´s issue of eurobonds. The first eurobonds were issued by CEZ already in 1994 and the company became the first industrial entity to do that in Central and South-Eastern Europe.

Yields from the issue will be used to refund debts and other general needs of the company.

Ladislav Kriz, Press Officer, CEZ, a. s.