Advisory provided by our law firm to Emma Capital for a groundbreaking dual-issuer offering of CZK 2.5 billion and €50 million senior secured notes.
First Dual-Issuer CZK 7.5 Billion Note Programme Revolutionizes Czech Capital Markets
A groundbreaking capital markets structure has been introduced in the Czech Republic with the first dual-issuer CZK 7.5 billion note programme. This innovative deal, governed under Czech law, involves two issuers - Emma Finance CZ a.s. and Emma Finance SK a.s. - jointly issuing notes, a rare occurrence in the Czech market.
Key Features of the Programme
- Dual-issuer arrangement: The joint issuance of notes by two separate entities helps to diversify credit risk and enhance investment appeal.
- Czech law governance: The programme's alignment with Czech law provides greater legal certainty and aligns with the local regulatory environment, boosting investor confidence.
- Size and currency: The CZK 7.5 billion scale marks it as a significant domestic capital market transaction, strengthening CZK issuance liquidity and benchmark status.
- Market innovation: The programme contributes to deepening the Czech koruna bond market by introducing complex multi-issuer structures, potentially attracting foreign and institutional investors.
Regional Impact
This innovative programme could pave the way for future Czech-law governed multi-issuer deals, encouraging other issuers in Central and Eastern Europe to consider similar frameworks. It helps strengthen the Czech koruna bond market, increasing its competitiveness and attractiveness, and could lead to improved liquidity and pricing transparency of CZK corporate bonds.
The programme also facilitates access to capital for issuers using innovative structures, potentially lowering financing costs regionally. It supports further integration of Czech capital markets with broader European markets by enhancing market infrastructure and credit instruments availability.
Advisory and Arrangement
Global law firm White & Case LLP advised Emma Capital on establishing the Czech-law-governed dual-issuer note programme. The White & Case team, led by partner Petr Hudec, worked closely with counsel Petr Šmerkl, associate David Mikyska, and legal intern David Eyem. J&T IB and Capital Markets, a.s. acted as arranger, and J&T BANKA, a.s. as manager for the transaction.
While specific details on the CZK 7.5 billion dual-issuer programme are limited in the available information, the context of notable Czech corporate bond offerings under Czech law and innovative bond programmes in the region is well documented in recent transactions by major Czech banks and corporations, reflecting ongoing market sophistication.
The development aligns with broader regional market trends focused on increasing the scope and sophistication of local currency issuance and structural innovation to boost regional capital market depth and investor confidence. The programme likely benefits from evolving regulatory and infrastructure improvements in Czech and EU markets, including enhanced market integration and legal frameworks.
It is noteworthy that the transaction required coordination across more than four jurisdictions, but the local media contact for further information is not specified. This groundbreaking deal is set to reshape the Czech capital markets landscape and potentially inspire similar innovative structures in the region.
- The joint issuance of notes by Emma Finance CZ a.s. and Emma Finance SK a.s. under Czech law is a rare occurrence in the Czech market, marking a significant innovation in the country's capital markets.
- The White & Case LLP team, including partner Petr Hudec, counsel Petr Šmerkl, associate David Mikyska, and legal intern David Eyem, advised Emma Capital on the establishment of the Czech-law-governed dual-issuer note program.
- The CZK 7.5 billion dual-issuer program, advised by White & Case LLP, contributes to deepening the Czech koruna bond market by introducing complex multi-issuer structures.
- The regional impact of this innovative deal could encourage other issuers in Central and Eastern Europe to consider similar frameworks, potentially improving liquidity and pricing transparency of CZK corporate bonds.
- By aligning with the local regulatory environment and offering services to facilitate access to capital using innovative structures, the program could lower financing costs regionally.
- The development resonates with broader market trends concentrating on increasing the scope and sophistication of local currency issuance, which is beneficial for the competitiveness and attractiveness of the Czech capital markets.
- The programme is intended to potentially attract foreign and institutional investors to the Czech koruna bond market, increasing its benchmark status and liquidity.
- This groundbreaking deal, involving the joint issuance of CZK 7.5 billion notes, could inspire similar innovative structures in the region, likely contributing to the evolution of capital markets in Central and Eastern Europe.
