According to company’s press release, Orco Property Group has launched the first bond issue in total amount of CZK 1.4bn on the Czech market, with nominal value of CZK10mn each. Bonds are due in 2011 and coupons will be derived from 6M PRIBOR +2.20% p.a. Bonds will be listed on Secondary Market of the Prague Stock Exchange (PSE) and have been offered mainly to institutional investors. Orco will use the proceeds for new acquisitions. We see the bond issue positively as it suggests further expansion and reiterate our Buy recommendation.