České dráhy (ČD), the Czech Republic’s national railway operator, has successfully completed a EUR 500 million eurobond issue, with the proceeds to be used primarily for the modernization of its rolling stock. The bonds mature in September 2031 and have a fixed annual coupon of 3.750%.
The issuance attracted strong interest from institutional investors in Europe, with demand exceeding the offered volume several times over.
At its peak, demand reached over EUR 1.8 billion, and nearly 150 institutional investors participated in the transaction.
According to the company, the result reflects favorable conditions for České dráhy in the Eurobond market, despite uncertainty and high volatility in the capital markets.
The funds will go toward modernizing the fleet
“The strong investor interest confirms the financial market’s confidence in the stability of České dráhy and in our long-term strategy for modernizing and developing the company. We will use the funds raised primarily to finance the renewal of our rolling stock and for other investments that will improve the quality of services for passengers,” said Michal Krapinec, Chairman of the Board of Directors and CEO of České dráhy.
The bonds are listed on the Luxembourg Stock Exchange and were subscribed by institutional investors. Asset managers were the predominant group among them, followed by banks, insurance companies, and pension funds.
From a regional perspective, the largest portion of the allocation went to investors from German-speaking countries, followed by investors from Central and Eastern Europe, the United Kingdom, and other European countries.
The lowest historical spread for a Eurobond issue
Lukáš Svoboda, member of the Board of Directors and Deputy CEO for Economics and Assets, said that the investor response and the price achieved for the bonds are very good.
“We are very pleased with the positive investor response and the price achieved for the bonds. Although the market situation is not straightforward, demand exceeded the offered volume several times over, which significantly contributed to achieving our lowest-ever spread for a Eurobond issue. We believe that the high level of investor interest reflects their confidence in the České dráhy Group,” stated Lukáš Svoboda.
The bonds received a Baa1 rating from Moody’s, a rating classified as investment grade. The issuance was carried out with the support of an international syndicate of banks led by Société Générale and UniCredit, alongside bookrunners BNP Paribas, Erste Group, Intesa Sanpaolo, ING and KBC.
Improved rating and better financial results
The issuance was preceded by a significant improvement in České dráhy’s rating. Moody’s raised the company’s rating from Baa2 to Baa1, with a stable outlook. According to the operator, this is the best rating ever obtained by the Czech national rail carrier.
On April 30, 2026, the České dráhy Group also published its financial results for 2025. Consolidated pre-tax profit, calculated in accordance with International Financial Reporting Standards (IFRS), reached 1.8 billion Czech koruna (74 million EUR), an increase of 46% compared to the previous year.
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