Fresh landmark deal for power company
Published: 31 May 2011
ČEZ bond offering enhances HSBC's credentials in the CEE region
HSBC Czech Republic has executed a second landmark eurobond transaction for Czech power company ČEZ A.S., one of Europe's top utility companies.
ČEZ is considered the most high-profile corporate in Central and Eastern Europe (CEE) and is 70 per cent owned by the Czech Republic sovereign fund. HSBC acted as Joint Lead Manager and Active Bookrunner on the EUR500 million, 3.625 per cent May 2016 bond offering for ČEZ, which was announced on the morning of 18 May 2011 and was three times oversubscribed when the books closed.
Mark Winterflood, Chief Executive Officer of HSBC Czech Republic, said: "This was the first EUR-denominated offering by ČEZ A.S. in 2011 and the transaction was priced at the tightest yield ever for an EUR benchmark bond by ČEZ."
These transactions are landmark transactions for HSBC in the Czech Republic
"These deals were the results of months of hard work by a team consisting of colleagues from the local Corporate, Global Market teams and the London-based Debt Capital Markets team. HSBC was engaged as joint lead manager and Bookrunner," he said.
ČEZ ranks among the top 10 European power utilities, in terms of market capitalisation and number of customers and is the only Czech issuer to have come to the market in the first half of 2011.
It was the fourth HSBC-led transaction for ČEZ since 2009 and represented a significant achievement for ČEZ and effectively opening a new maturity in the firm's eurobond curve.
Kent Holt, Head of Corporate and Institutional Banking said: "These transactions are landmark transactions for HSBC in the Czech Republic."
(This deal) cements us as a serious player in the local corporate banking market as well as enhancing our credentials in the wider CEE
ČEZ is the corporate counterparty on the local market and HSBC's senior involvement in this transaction cements us as a serious player in the local corporate banking market as well as enhancing our credentials in the wider CEE.
In November 2009, the bank followed its initial transaction by acting as sole lead manager and sole swap counterparty on a new USD100 million three-year, floating rate medium term note (MTN) private placement for ČEZ.
It was the first MTN private placement executed for any HSBC client in the CEE and further evidence of the Group's growing influence in the region. Then, in April 2010, the bank acted as Joint Lead Manager and Bookrunner on a EUR750 million April 2025 bond offering for ČEZ.
HSBC is able to provide access to overseas investors due to its global presence and deep roots in investor bases. HSBC's ability to connect emerging markets with developed markets for customers' benefit positions the bank strongly for the future.
Mark Winterflood
Mark Winterflood joined HSBC in 1995 as an international manager. He has more than 15 years of banking experience within the Group, most recently as Senior Manager International Business, Global Commercial Banking HSBC based in Hong Kong where he was responsible for the formulation and execution of the Group’s global Leading International Business strategy.
Before that he held a number of senior roles in HSBC France, among them Head of Corporate and MME and Head of Trade Services Operations. As an International Manager, he has extensive overseas experience, having worked for the Group in the United Kingdom, Qatar, Indonesia, Singapore, France and Hong Kong. He studied at Loughborough University of Technology in the United Kingdom.
Mr Winterflood is married and has two children. His hobbies are running, skiing and water skiing. He speaks English and French.
Kent Holt
Kent Holt joined HSBC in November 2010 as Head of Commercial Banking. Before joining HSBC, he was partner and Managing Director in an international financial consulting company and spent over 13 years with ING.
Mr Holt held a number of senior positions in ING around Central Europe, among them Head of Corporate Finance at ING Czech Republic where he was involved in a variety of complex transactions in the food, manufacturing and utility sectors.
Mr Holt is married. His hobbies are travelling and skiing. He speaks English and Czech.
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