Czech Gas Networks Investments

Our Clients

SECTOR: ENERGY INFRASTRUCTURE

Czech Republic

Czech Gas Networks Investments S.à.r.l. (CGNI) is the parent company of the Czech Grid Holding a.s., the owner and operator of the largest fully regulated natural gas distribution network in the Czech Republic, which covers more than 80% of the country’s energy market and is provided by two companies – GasNet and GasNet Služby.

Given its strong commitment to ESG and the adjustments needed to its network assets and renewal strategy to reach net-zero by 2050, CGNI was looking to optimise its debt capital structure using its Green Finance Framework, which is closely aligned to the EU’s Taxonomy Regulation.

CGNI’s aim was to find the best balance between debt capital markets and bank loans, and the financing of eligible green projects.
This led to the issuance of its inaugural €500 million 8-year Green Bond in September 2021 with UniCredit as Joint Bookrunner.

The debut Green Bond proceeds raised will be used for financing and refinancing purposes with a focus on the retrofit of the company’s existing gas network to make it compatible for the distribution of hydrogen and other lowcarbon gases.

A key feature in the retrofit of local networks, covering circa 49,000 km is the replacement of steel for polyethylene pipelines, to enable the distribution of clean energy in more than 3,800 municipalities. In addition, the proceeds will also be used for various energy efficiency improvements planned across CGNI’s buildings.

Sustainability and transformation to a low-carbon environment are key drivers for our future and our business strategies. It has been an honour and privilege to cooperate with the UniCredit Bank team on this strategic Green Bond transaction. Thank you for their professional knowledge and expertise to succeed.

Thomas Merker, CFO Czech Gas Networks Investments S.à.r.l.

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