České dráhy to Prepare a New Bond Issue

České dráhy has mandated Česká spořitelna, Komerční banka and UniCredit Bank Czech Republic and Slovakia  to place a senior unsecured bond issue with a maturity of 5 years and an expected volume of more than CZK 5 billion.

“We would like to use the proceeds gained from the sale of the bonds mainly for capital expenditures aimed at the acquisition of new modern trains and enhancing the services we provide to our passengers on these trains. This year alone, we are investing almost CZK 20 billion in new modern trains, and in the next 10 years we plan to acquire new trains worth more than CZK 160 billion to meet the requirements of our clients,” says Michal Krapinec, Chairman of the Board of Directors and Director General of České dráhy.

“I believe that the bonds offered by České dráhy will be an attractive and at the same time also a conservative investment opportunity. We achieved a year of record-breaking economic results and we maintained our Moody's investment grade rating at Baa2 with a stable outlook. We can also rely on long-term contracts with the clients ordering public railway transport services and on the growing numbers of transported passengers driven by our ongoing modernisation and improvements in service quality,” said Lukáš Svoboda, Member of the Board of Directors and Deputy Director General of České dráhy for Economics and Purchasing.

The new issue of senior unsecured bonds denominated in Czech crowns features a maturity of 5 years and an expected volume of CZK 5,001,000,000 with the possibility of an increase up to CZK 8,001,000,000. The nominal value of one bond will be CZK 3,000,000.

Last year, the České dráhy Group achieved a record-breaking profit before tax amounting to CZK 3.8 billion. This is the highest ever profit before tax of the ČD Group reported under the International Financial Reporting Standards (IFRS). This showcases that the financial performance recorded an improvement by CZK 3.4 billion year-on-year. All ČD Group companies contributed to this excellent result, including the passenger transport segment, which also achieved its historically record-breaking results.

This year will be a record-breaking year for České dráhy from the viewpoint of renewal of its rolling stock. Up to 140 new electric, diesel and non-traction units and electric locomotives are expected to enter the Czech railway network during the year. Counting each carriage and train unit cell separately, this equates to approximately 440 individual vehicles. These vehicles include the most modern ComfortJet long-distance train sets as well as new RegioPanter and RegioFox units intended for regional railway lines.

Disclaimer

This document constitutes a promotional communication within the meaning of Article 2(k) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market and repealing Directive 2003/71/EC, as amended (hereinafter referred to as the “EU Prospectus Regulation”) and related legislation instruments. This document is not a prospectus. The prospectus has not been approved by the Czech National Bank yet in accordance with the EU Prospectus Regulation. Nevertheless, the approval of the Prospectus on the part of the Czech National Bank should not be construed as an endorsement of the securities offered. Investors should subscribe for or purchase the Bonds solely on the basis of the Bonds’ prospectus and should read the prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with a decision to invest in the Bonds. The Prospectus will be available in an electronic form on the website of the Issuer – České dráhy – www.ceskedrahy.cz in the section For Investors – Bonds.

This document is not intended for publication, release or distribution, whether directly or indirectly, in or into the United States of America or to persons from the United States of America (as such term is defined in the so-called “Regulation S” promulgated under the U.S. Securities Act of 1933, as amended (hereinafter referred to as the “Securities Act”)), in the United Kingdom, Australia, Canada or Japan or in any other jurisdiction where such publication, release or distribution would be prohibited by applicable law.

The offer, sale or purchase of the Bonds, as well as the distribution of the present document may be restricted by legal regulations in certain jurisdictions. The Issuer asks all persons into the possession of whom the present document may come to get informed about any such restrictions and to observe the same.

The offering and sale of the Bonds have not been registered under the Securities Act and the Bonds must not be offered or sold in the United States of America or to the persons from the United States of America unless they are registered or unless an exemption from the registration requirements as specified by the Securities Act is available for them. The Issuer does not intend to register any part of the offering of the Bonds or to conduct a public offering of the Bonds in the United States of America.