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Czech Aeroholding Improves Its Financing Structure and Requests Higher Moody’s Rating

Czech Aeroholding is soon to refinance its loan with the European Investment Bank taken in 2003 for the Terminal 2 construction. The loan was to be paid back in full in 2027. The new loan provider, based on the results of a tender, is Komerční banka. The act of refinancing will result in savings on the overall loan costs and meet the premise for the further improvement of the current A3 Stable rating by the renowned Moody’s agency.

“Thanks to the Group’s good economic results, the current A3 Stable rating by the renowned Moody’s agency, positive forecasts and the overall financial market situation, we had the opportunity to obtain significantly better conditions for the new loan. When compared with the loan conditions of the European Investment Bank, we wanted to secure a better loan rate and minimise the limitations imposed by the bank,” Zuzana Tairova, Czech Aeroholding Vice Chairman of the Board of Directors, said.

Czech Aeroholding announced a tender pursuant to the Public Procurement Act which was won by Komerční banka. The company will use the new loan to refinance the European Investment Bank loan and short-term commitments based on Bill of Exchange Programmes. By refinancing its Bills of Exchange, the company will secure a safer financing structure with a lower-rate short-term debt.

“The 5-billion-crown loan to Czech Aeroholding represents for Komerční banka an important loan trade of this year. We were able to win the several-round tender thanks primarily to our individual approach to this strategic transaction. We were able to react in a flexible way to the client’s requirements in the context of the existing market situation. Czech Aeroholding is a key Komerční banka client. Therefore, we highly value this success,” Radek Trachta, Director of Komerční banka Top Corporations Division, stated.  

“Compared to the conditions of the original loan from the European Investment Bank, the act of refinancing will gain the company savings in the overall loan costs area equal to CZK 230 million. Our goal is to invest the saved funds in further development and to increase the safety of Václav Havel Airport Prague,” Václav Řehoř, Chairman of the Board of Directors, commented on the company’s business plan, adding: “At the same time, the act of refinancing fulfils the conditions for the further improvement of the A3 Stable company rating.”