The CPI said it was paying for the repayment because the money can be gained at the international capital markets at lower costs.
All bonds issued by Czech Property Investments will be repaid between 21 and 24 November. The CPI Property Group expects the transaction to reduce its interest expense and improve its interest coverage ratio. "Repayment of local bonds naturally builds on our ability to meet the Group's financial needs on international capital markets," said Martin Němeček, CEO of CPI Property Group. "We are continuing to focus on reducing the cost of our capital structure," said David Greenbaum, CFO.
Czech Property Investments deals with investment and real estate management mainly in Central Europe. He has been operating on the real estate market since the 1990s, managing offices, retail space, apartments, hotels and logistics centers worth about 117 billion CZK at the end of last year. Among its projects are the Quadrio multifunctional complex in the center of Prague or the Meteor office park in Karlín, Prague.
Last year, according to its annual report, the company raised its net profit from continuing operations to CZK 8 billion from three billion a year earlier.
Mother CPI Property Group focuses on long-term investments in the Czech Republic, Berlin and Central and Eastern Europe. The group earned CZK 16.9 billion last year, net profit thus increased by about 40 percent year-on-year.
(source: ihned)
