České dráhy returns to international markets with successful benchmark issuance

The EUR500 million notes carry a fixed annual interest rate of 3.75%, are due in five years, and are listed on the regulated market of the Luxembourg Stock Exchange.

Investor demand was exceptional, with the offering over six times oversubscribed, attracting over EUR3 billion in orders. This marks a successful return of České dráhy to the international markets after a three-year break.

The cross-border A&O Shearman team working on the transaction was led by Prague-based partner Petr Vybíral, London-based partner Jamie Durham, and associate Jan Mourek.

Vladimír Stehno, head of debt capital markets at Česká spořitelna (Erste Group), commented on behalf of the joint bookrunners: “The large oversubscription from high-quality accounts, predominantly from asset managers and insurance companies, was driven not only by confidence in České dráhy's business profile but also by the management's outstanding performance during the investor roadshow. The seamless transaction process was further enhanced by the excellent work of the A&O Shearman team.”

Lukáš Svoboda, member of the board of directors and deputy CEO for economics and purchasing at České dráhy, said: “We will use the proceeds from the transaction to invest in new rolling stock and to refinance existing liabilities, so its success was very important to us. The volume of oversubscription and the coupon achieved are the best evidence of this. At the same time, we placed great emphasis on the smooth execution of the transaction—something that was made possible thanks to the excellent collaboration of all parties involved, including the support from A&O Shearman.”

Petr Vybíral added: “We are really grateful for the opportunity to participate in this immensely successful issuance by České dráhy. I am proud of our entire team and extremely glad that we were able to contribute to the company’s further development.”