Successful CZK 8 billion placement of bonds by Czech Railways

Czech Railways Group successfully placed bonds in the amount of CZK 8 billion, with a coupon of 5.50% p.a. and maturity of five years. Česká spořitelna, Komerční banka, and UniCredit Bank acted as joint lead managers. The issue drew enormous interest among investors who altogether ordered bonds for almost CZK 14 billion, which is substantially in excess of the intended volume and represents the strongest demand for an individual issue of corporate bonds ever in the history of the domestic market.

Czech Railways will use the proceeds from the issue primarily to finance investments in rolling stock. “We want to modernize our trains and further improve our service offerings,” says Michal Krapinec, chairman of the board and CEO of Czech Railways, adding: “Last year we generated record-breaking earnings before tax in an amount of more than CZK 3.8 billion. The strong interest of investors in our bonds is a testimony to their trust in the long-term stability and success of Czech Railways.”

Lukáš Svoboda, board member and deputy for finance and procurement, has this to add: “I am pleased to see so many domestic investors showing interest in Czech Railways bonds, among them asset management companies, insurers, investment companies, private banking clients, as well as banks themselves. This is a testimony to their trust in the financial stability and future potential of our national railway operator”.

If you have further questions, you may contact:

České dráhy - Press Department
Nábřeží L. Svobody 1222
110 15 Prague 1
e-mail: press@cd.cz

Disclaimer

This announcement does not constitute an offer or a solicitation of an offer to sell, nor does it constitute a solicitation to submit an offer to purchase or subscribe, nor is it part of any such offer or solicitation, and it may not serve as the basis of a contract for purchase or subscription by itself or its distribution, nor may it be relied upon in connection with any contract for purchase or subscription. The offer, and the distribution of this document and other information in connection with the listing and offer in certain jurisdictions, may be restricted by law. Persons who come into the possession of this document or of other information referenced herein, are required to inform themselves about, and to observe, any such restrictions. Failure to do so may constitute a breach of securities law in those jurisdictions. Any decision to subscribe or purchase the securities referred to herein may only be made on the basis of the information contained in the prospectus, which has been approved by the Czech National Bank and made available in electronic format on the website of the issuer at www.ceskedrahy.cz in the section “For investors – Bonds”. The present communication is not a prospectus. The approval of the prospectus by the Czech National Bank should not be understood as an endorsement of the securities offered.

This document is not for release, publication or distribution, directly or indirectly, in or into the United States or to U.S. Persons (as defined in Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), the United Kingdom, Australia, Canada, Japan or in any other jurisdiction where such release, publication or distribution would be prohibited by the applicable law.

The offer and sale of the bonds has not been, and will not be, registered under the Securities Act or any U.S. state securities laws and the bonds may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons unless so registered, or an exemption from the registration requirements of the Securities Act is available. The Issuer does not intend to register any portion of the offering of the bonds in the United States or to conduct a public offering of the bonds in the United States.

This communication contains certain forward-looking statements with respect to the financial condition, results of operations and business of the issuer and its subsidiaries. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “targets”, “may”, “aims”, “likely”, “would”, “could”, “can have”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. Forward-looking statements may and often do differ materially from actual results. The issuer’s business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to differ materially from those expressed or implied by the forward- looking statements contained in this communication. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. As a result, undue influence should not be placed on any forward-looking statement.