Linklaters has advised Net4Gas, the Czech gas transmission system operator, on a three tranche bond in EUR and CZK amounting to €710m. The CZK 7bn Reg S issue is one of the largest CZK denominated bond issuance. 

The bond issuance is part of a €1bn refinancing of acquisition debt used by Allianz and Borealis to purchase Net4Gas from RWE in August 2013.  

The issue maturing in January 2021 was successfully priced at a spread of mid-swaps plus 150 bps, and will carry a coupon of 2.25% p.a. The total order book exceeded CZK 8.8bn. Banks purchased 72% of the deal, followed by asset managers 19% and insurance companies 9%.

Ian Andrews, Infrastructure partner at Linklaters, said: “This refinancing is the culmination of a very successful investment for Allianz and Borealis, who have managed to significantly improve the terms on which they originally acquired what is one of the ten largest companies in the country. As well as being the largest ever private company bond in the country it required some careful structuring and, highly unusually, a full public debt procurement process with 25 separate debt tenders for an amount in excess of €1bn”.

The Linklaters team included Infrastructure partner Ian Andrews and managing associate Ilia Ditiatev and Capital Markets partner Mark Nuttall and managing associate Alexander Shopov. Linklaters previously advised Allianz and Borealis on the acquisition of Net4Gas from RWE and its financing in August 2013.