Czechoslovak Group a.s. (CSG), a leading defense, industrial, and technology group based in Prague, has successfully priced a dual-tranche offering of senior secured notes, raising $1 billion and €1 billion due 2031 on European markets. The notes were issued at yields of 6.5% for the dollar tranche and 5.25% for the euro tranche, marking a significant strengthening of the capital structure and reduction in borrowing costs.
The proceeds will be used to refinance certain redeem CSG’s existing indebtedness and to support further growth of the Group. The issuance, initially marketed at a minimum of $500 million and €350 million, was upsized to $1 billion and €1 billion due to exceptional investor demand, with bids exceeded the offer by more than 4 times.
“We are delighted by strong interest from investors and demand which significantly exceeded the offering. It also confirms right way of our business and financial strategy and commit us to develop it further,” said Zdeněk Jurák, CFO of CSG.
The issuance has been supported by obtained ratings from Moody’s (Ba1), S&P: (BB+) and Fitch: (BBB-). This achievement aligns with CSG’s robust financial outlook, with projected revenues of €6.7 billion in 2025 and strong cash flows supporting growth in defense and small-caliber ammunition markets. Over 40% of CSG’s revenue in the 12 months to December 2024 came from supplying Ukraine, with another 40% from other European markets, reflecting the company’s pivotal role in addressing regional security needs.
“This milestone strengthens our financial position and supports our commitment to delivering innovative solutions across defense, aerospace, and other industrial sectors. The favorable terms of this issuance highlight the growing recognition of the defense sector’s importance and CSG’s leadership within it,” added Zdeněk Jurák.
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