CPI BYTY, the second-largest owner and manager of housing in the Czech Republic, and part of CPI Group, has issued project bonds totalling CZK3bn (€115m).
The Raiffeisenbank-issued bond programme is in four issues with varying maturity, and employs real estate as collateral.
The first bond project on the Czech market was issued on a portfolio of supermarkets purchased in autumn last year by CPI’s sister company CPI Alfa. The whole issue was sold within a few hours.
Jirí Dedera, CPI group investment director, said: “The success of the pilot issue of project bonds, with very good, professional cooperation from our long-term business partner Raiffeisenbank, encouraged us to issue additional project bonds, again with the assistance of Raiffeisenbank.
“The bank is a traditional business partner in the financing of real estate projects. We are happy to offer another alternative to classic bank loans to our clients from the development and real estate investment fields. In these times of insecure economic development, many companies tend to postpone arranging bank loans. We, however, are capable of finding different ways of financing,” said Marek Tichý, corporate finance director of Raffeisenbank.
Investors can choose from four types of bond according to length of maturity and interest. The length of bond maturity ranges from two to eight years, with a fixed coupon ranging from 2.5% to 5.8% and an annual payout. Face value of the bond is CZK1,000.
