Kretinsky EPH Group


EPH Issues Four Year Bonds Worth Kc3 Billion

Daniel Kretinsky

Prague, Aug 1 (CTK) – Energy and industry group Energeticky a prumyslovy holding (EPH) owned by Daniel Kretinsky is issuing four-year bonds in the total estimated amount of Kc3bn, the company said on its website today.


According to EPH, Kc2.5bn of the total amount has already been subscribed within the first tranche as of the issuance date. The yield from the issue has been used mainly for refinancing the company’s current debts.


“According to the information available to us, this is the largest corporate bond issue in the Czech Republic, within the last two years, without an external credit rating. In my opinion, this interest reflects the strong financial and business profile of our group that operates stable, regulated and long-term contracted infrastructure assets and strategically strengthens in the field of power generation,” CFO and board member Pavel Horsky said.


EPH is a leading Central European energy group which owns and operates facilities in the Czech Republic, Slovakia, Germany, Italy, Britain and Hungary.


Kretinsky, who is worth Kc53bn, is the fifth richest Czech, according to the Forbes magazine. He became EPH’s majority owner last year, now holding 94 percent of its shares. Entrepreneur Patrik Tkac and investors linked to J&T group have left EPH.


According to EPH’s annual report, the group’s net profit increased by 9.6 percent to about Kc22.5bn in 2017, and its consolidated sales rose by 21.8 percent to almost Kc154bn. Consolidated earnings before interest, taxes and depreciation (EBITDA) amounted to Kc46.5bn.


“Taking into account the high EBITDA to cash flow conversion and significant share of long-term contracted and regulated asets, the consolidated net debt ratio of 2.9x EBITDA represents a very conservative value, placing EPH among the least indebted energy groups in Europe,” Kretinsky said in the report.


EPH consists of two main pillars – EP Infrastructure (EPIF) and EP Power Europe. EPIF provides services including gas transit, electricity and gas distribution, gas storage and heating. EP Power Europe focuses on coal mining and electricity production.


A total of 31 percent of EPIF belongs to Australian bank Macquarie’s fund and the rest is held by EPH.


Apart from a majority stake in heating company Prazska teplarenska and Hungarian heat producer Budapesti Eromu, EPIF has stakes in companies Eustream and Nafta.


In the summer of 2016, EPH took control of German brown coal mines, buying them in a consortium with PPF Investment from Swedish company Vattenfall.