Allen & Overy announced today that it has advised Czech Gas Networks Investments S.à r.l (CGNI) on its first ever green issurance and placement of EUR 500 million green notes with investors on international capital markets (the Green Notes). The Green Notes, rated BBB+ by both S&P and Fitch, have been listed on the Global Exchange Market of the Irish Stock Exchange plc trading as Euronext Dublin. The proceeds from the issuance will be used exclusively for financing or refinancing of new or existing eligible projects under the CGNI’s Green Finance Framework.
CGNI, which is owned by a consortium of long-term infrastructure investors, holds 100% of the share capital of Czech Grid Holding, a.s., which in turn fully controls two core Czech businesses, operated by its subsidiaries: GasNet, s.r.o. (being the main distributor of natural gas in the Czech Republic) and GasNet Služby, s.r.o. The introduction of Green Finance Framework and successful issuance of the Green Notes confirms CGNI’s commitment to sustainable development of the gas distribution industry. Work on the transaction was managed by A&O Prague with the team being led by partner Petr Vybíral including senior associate Jana Chwaszcz and junior lawyer Denisa Jonášová. The Luxembourg law aspects were handled by partner, Paul Peporte, together with associate Ruslana Hrischeva.
The Allen & Overy team worked closely with the client as well as with the local management team led by Thomas Merker, Chief Financial Officer of GasNet, a.s., who commented: “Our green bond debut was a huge success. Having the Allen & Overy team on board giving us valuable guidance turned out to be of a crucial importance. They are a team of highly experienced and dedicated professionals who helped us to make a big step forward towards green and sustainable future.”
Partner Petr Vybíral said: “We are happy for CGNI’s continued success with investors and their perfectly timed entry into green financing. It has been an honour and privilege for our entire team to have assisted CGNI on this strategic transaction.”
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