Cesky Telecom said it would issue CZK 4 bil. 3-year bond in order to refinanace its more expensive (11.3%) CZK 7 bil. bond issue that was called in February ahead of maturity (2004). The new CZK 4 bil. issue is part of a 10-year CZK 20 bil. domestic bond program. Cesky Telecom has a very low indebtedness and good cash flow generation, and the program is primarily a debt restructuring exercise. A possible acquisition of the remaining 49% stake in Eurotel would require additional debt financing, but the chances of that acquisition taking place will depend primarily on the outcome of CT privatization. Neutral.
(Ondrej Datka)