Several weeks ago holders of the CZK 2 billion (app. €74 million) bonds CPI 5,1/2021 approved the amendment of the terms and conditions of the bonds, issued by Czech Property Investments, a.s., the fully owned subsidiary of CPI Property Group. All bondholders were in agreement to continue with the new terms during which not one bondholder took advantage of the opportunity for early repayment of the Bonds in accordance with their original terms and conditions. “We view this matter as a sign of trust and appreciation from our investors, mostly private individuals, and their recognition of the strength and stability of the CPI Property Group. Meanwhile, these new terms are extremely favourable,” expressed Martin Němeček, CEO of CPI Property Group. The approved amendment entails, inter alia, the decrease in interest from 6m PRIBOR plus 6.5% to a fixed 5.1% p.a., the extension of bonds with a maturity of a 2 years term until 2021, in addition to modifications of certain covenants. Although the amendment has almost no precedent on the Czech capital market, it is a standard and recognised method of agreement between a corporation and its investors on the advanced capital markets.
