Energy giant ČEZ issues first green bonds

Energy company ČEZ has issued its first so-called green bonds, with a total volume of EUR 750 million (approximately CZK 18.25 billion). It intends to use the proceeds to finance projects or its long-term assets. However, projects and assets linked to fossil fuels will be excluded, and the company will not use the funds for them. The bonds will mature in 2034. This follows from information published by ČEZ on the company’s website.

ČEZ expects the bonds to be issued on 27 May. Their interest rate has been set at 4.375 percent, with maturity in 2034. Several foreign banking institutions are acting as lead managers for the issuance.

"ČEZ intends to allocate an amount equal to the net proceeds from the bond issuance to long-term assets and project financing in accordance with the Factsheet. The bond proceeds will not be allocated to assets or projects related to fossil fuels," the company said.

The ČEZ Group is one of the largest energy companies in the Czech Republic. The state is its majority shareholder, holding approximately 70 percent of shares through the Ministry of Finance. ČEZ earned CZK 14.5 billion in the first quarter of this year. The group’s net profit thus rose by 13 percent year on year.