Think Railways

Czech state-owned railway operator Ceske drahy (CD) has issued bonds worth over CZK 3bn (EUR 115.2 m) in order to repay its previous debts, informs the Czech News Agency.

The bonds have been issued in two tranches with 7-year and 20-year maturity and annual interest of 1.89 and 3%.

"We are using this standard way to refinance in advance our previous loans which will become due this and next year. We have obtained about one third of the necessary amount from the first two tranches under more advantageous conditions than from previous bonds," CD board chairman Pavel Krtek said.

The main manager of the issue was Erste Group Bank AG.

CD's total debt grew to CKZ 36bn last year. Its net debt is nevertheless slightly lower, spokesman Radek Joklik said.

CD issued bonds worth EUR 37.7 m with 7-year maturity in the first tranche and bonds worth EUR 77.5m with 20-year maturity in the second tranche.

The current financial operation will not increase CD's net debt, Krtek added.