During the last three weeks, Dr. Max has achieved a significant milestone in the diversification of its financing structure through the first-time issuance of registered corporate bonds on the Czech capital market.
Order books have been closed last Friday, 08 December 2023, with a total placed volume of CZK 5bn. This represents the upper limit of the total aspired placement. Thereby the investor demand for Dr. Max bonds resulted in an oversubscription of approx. CZK 533 million, which represents a very solid 110,7% subscription rate. Bonds, issued by Dr. Max Funding CR and guaranteed by parent company Glebi Holdings, have received approval from the Czech National Bank (CNB) in mid-November.
The bonds offered contain an attractive 8,5 percent annual coupon, surpassing current inflation rates. This is especially attractive given the anticipation of potential reductions in CNB interest rates, resulting in decreased returns on traditional savings accounts and fixed-term deposits.
Dr. Max has been supported in the successful placement of bonds towards the Czech capital markets by a selected pool of banks, namely, UniCreditBank, Komerční banka, Česká spořitelna, J&T banka and ČSOB.
"We are confident that this success reflects the strength of the Dr. Max brand and the trust that customers and investors have placed in us. Additionally, this achievement solidifies our reputation as a first-time issuer among Czech banks and bondholders alike," states Thomas Bornemann, Group CFO of Dr. Max.