According to the CEZ CFO, Petr Voboril, the company may issue new bonds worth between EUR 300-500m (CZK 9-15bn) to finance possible acquisitions in the Balkans. The bonds should be denominated in euros and may be offered before July or after August. Note that the company already earlier mentioned an issue of new bonds. CEZ’s debt / equity ratio stood at 0.25 at the end of 2004 (unconsolidated), which is below that of its western peers (D/E at 0.5). Source: Bloomberg
Separately, the deputy industry and trade minister, Martin Pecina, repeated that the ministry will ask for the postponement of the privatization of Severoceske doly (SD), the largest domestic coal mines, until mid-2005 or even the end of 2005. The reasons are ownership changes at Mostecka uhelna and the uncertain valuation of Mostecka uhelna due to unclear mining limits. Note that the government has a plan to integrate SD into CEZ via a joint venture with Mostecka uhelna. Source Reuters
Poland should start the privatization of two coal power plants, Dolna Odra and Kozienice, within two weeks. Preliminary bids are due by the end of March and April 5 respectively. The capacity of Dolna Odra totals 1,950MW and Kozienice 2,845MW. CEZ is considering bidding for both power plants.