Successful Issuance of the Czech Republic's First Social Government Bonds

Investor demand for the new securities amounted to almost CZK 19 billion. Bonds with a total nominal value of CZK 13.925 billion were issued across two maturities – five and ten years.

The average yield to maturity of the five-year social government bond was 3.914% p.a., approximately 15 basis points lower than the comparable conventional government bond. Bonds with a nominal value of CZK 7.0 billion were issued.

The ten-year social government bond achieved an average yield to maturity of 4.448% p.a., approximately 10 basis points lower than the corresponding conventional government bond, with bonds worth CZK 6.925 billion issued.

Overall, compared to conventional government bonds, the issuance of social government bonds is expected to generate savings in state budget interest expenditures of nearly CZK 122 million (on a non-discounted basis). A total of seven primary dealers successfully subscribed to the issue.

In accordance with the Social Finance Framework of the Czech Republic, the net proceeds of the issuance will be allocated to eligible social expenditures in the state budget. Priority will be given to the category “Socio-economic Development and Empowerment: Social Inclusion”, which received the highest sustainability contribution assessment of “Strong” in an independent second-party opinion.