'Crisis proof' Czech bonds raise EUR 2 billion

The latest Czech sovereign bond issuance raised EUR 2 billion on ten-year bonds, with demand reaching a value of EUR 3.5 billion from around 190 investors. Erste Group Bank AG managed the issuance and released a statement saying that the Czech Republic “capitalized on its strong fundamentals and reform pace, which were positively received by the investors”.

“CEE government bonds and in particular the Czech ones provide a reasonable reward to investors at a time when sovereign bonds of the core euro area countries have become extremely expensive and offer very low yields,” said Franz Hochstrasser, Deputy CEO of Erste Group. Hochstrasser added that Czech bonds are more “crisis resistant” than other European sovereigns. In 2011 Erste Group ranked 1st as bookrunner for corporate and sovereign bonds in Austria and the CEE, with a market share of 11.7 percent and a volume of over EUR 4.2 billion. The Romanian Ministry of Public Finance ( MFP ) sold earlier this month treasury certificates of EUR 427 million, at an average yield of 5.90 percent per year, and a 12-month deadline, according to the Romanian Central Bank (BNR). Liam Lever, liam@romania-insider.com