According to (12 EUR, 0,09%) Financial, CEZ will finance its purchase of a 10% stake in (26 190 HUF, -0,42%) with its own cash and funds raised from a eurobond issue.
The current value of 10% stake at is around EUR 1.1bn. CEZ can issue up to EUR 4bn of Eurobond. We assume that EUR 1bn can be use for the 10% at and EUR 250m may by use for two gas power plant which and CEZ plans to build (total estimated cost of building two gas power plants with 800MW capacity is around EUR 500m and we speculate that CEZ will have to contribute with 50% of the investment cost). Currently we see the news as neutral.