(Updates with CEO comment starting in third paragraph.)
Oct. 11 (Bloomberg) -- Czech Property Investments AS will sell corporate and project bonds in the first half of next year, and will apply for a credit rating by year-end.
The bonds will be sold to retail and institutional investors. The sale is part of an overall bond-sale plan valued at 250 million euros ($340 million) to 300 million euros, Chief Executive Officer Zdenek Havelka said at a press conference in Prague today. The first tranche of three to five-year bonds may be issued in May, after CPI’s full-year results, the CEO said.
“We’re evaluating different ways of selling the notes including a retail sale,” Havelka said. “We hear from lenders that demand from retail investors is on a rise so at the end the retail may present a significant part.”
CPI expects to acquire assets worth 18 billion koruna ($989 million) this year, bringing the total value of its assets to 55 billion koruna by the end of 2011, it said today.
The company’s total debt may total to 25 to 27 billion koruna by the end of the year, Havelka said. The debt ratio to capital is “very good” and low leverage is a reason why CPI plans to issue bonds, Havelka said.
--Editors: Peter Branton, James Gomez
To contact the reporter on this story: Lenka Ponikelska in Prague at firstname.lastname@example.org
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