Czech Republic

Czech Republic

ING Wholesale Banking

Some business opportunities are simply 1st class

See how we arranged a EUR 300m Eurobond issue for Ceske Drahy securing its high speed future

The story behind the deal

In June 2011, CD made its Eurobond debut with a €300 million five-year issue. This brought CD’s financing strategy into line with its Western European peers by giving it the flexibility of being able to access both the bond market and banking facilities. It also made the company the first CEE railway firm to obtain an external credit rating and tap the bond market.

After its debut issue performed solidly, CD returned with a second €300 million Eurobond in July 2012 that offered a fixed coupon of 4.125%. “Based on the advice of our joint lead managers, including ING, we tested the appetite of investors for a longer tenor and successfully sold a seven-year bond. The bond closed nine times oversubscribed and offered a yield in line with our debut bond despite the longer maturity. The pricing enabled us to reduce our overall cost of funds and was an extraordinarily positive outcome,” notes Vohralík.

“It was a milestone in the company’s history, not just in its financing: it showed we were credible.”
Petr Vohralík, CFO of Ceske Drahy