September 12th, Prague – At the end of June, the leading fashion online retail store in the Czech Republic offered subordinated bonds worth CZK 150 million in total. The bonds were subscribed within just one month. The issue of the bonds, led by BH Securities, have a four-year maturity and an interest rate of 6.5%.
“With today’s favourable situation on the capital market and the general economic growth, we were convinced that companies such as ZOOT could raise finances in other ways than just equity financing,” said ZOOT’s Financial Director, Petr Ladžov.
Last year, through BH Securities, ZOOT issued a pilot private offer of bonds amounting to CZK 80 million in total. They were sold within a fortnight to a limited group of investors. This year, thanks to this apparent interest in its bonds, and in order to accelerate ZOOT’s expansion, the company has doubled bonds to CZK 150 million in a public offering through a prospectus approved of by the Czech National Bank.
“Thanks to the success of our pilot issuing at the end of last year, we thought it very likely that there would be an interest in our bonds even among the wider public. And this proved to be true. The entire bond issue, worth CZK 150 million, was subscribed very quickly, within just four weeks. It is interesting, that interest in the bonds was much greater than the amount we actually had to offer,” added Petr Ladžov.
This year, the public offering interested both non-institutional and institutional investors. Institutional investors account for about one third of the volume of the issued bonds. The fixed minimal investment amounted to CZK 50, 000.