Analysis
Deloitte Bond Index
Data on the Bond Market in the Czech Republic
The Bond Index shows the developments on the CZK corporate bond market since 2017. Its aim is to inform the general professional public about the size and structure of the Czech bond market.
Bond Index 1H 2024
According to public information records, in the first half of 2024, companies in the Czech Republic issued corporate CZK bonds in a total amount of CZK 34.9 billion, which is nearly the total amount of issues placed in 2023. The volume of new issuance was mainly driven by a high number of above-threshold issues.
“The Bond Index data indicates that if the trend of growing issue volumes from the first half-year continues, 2024 will see the highest volume of issues since 2017. In addition, compared to the previous year, there has been a decrease in coupon yields for below- and above-threshold issues and in their spread.”
Roman Lux, Partner, Financial Advisory, Deloitte
Main conclusions
- In the first half of 2024, the total amount of corporate CZK bonds issued was CZK 34.9 billion, of which CZK 34.4 billion were above-threshold issues and CZK 503 million were below-threshold issues. The volume of above-threshold issues has grown since the historic low levels in 2022.
- The largest issues in the first half of 2024 were the issues of JTPEG Financing CZ I, a.s. and České dráhy, a.s. with an aggregate amount of CZK 19 billion. The average bond maturity was 3.3 years, in line with the average historical maturity on the Czech bond market.
“The first half of 2024 saw the issues of five bonds with a value exceeding CZK 1 billion each. The aggregate value of these bonds surpassed CZK 24 billion, an increase of 14% compared to the whole previous year. According to the data, demand on the commercial bond market is growing and issuers respond by increasing both the number of bonds issued and the total volume of issues.”
Jan Brabec, Partner, Debt Advisory, Deloitte
Deloitte Bond Index 2023
In 2023, companies in the Czech Republic issued bonds in an aggregate volume of CZK 37.4 billion, a year-on-year increase of 75% in the volume of new issues. This increase was a result of economic recovery following the slowdown caused by the COVID-19 pandemic. The recovery of the national economy caused a significant 227% increase in the volume of issues between the first and second half of 2023. For more information on last year’s CZK corporate bond market developments see: Bond Index 2023.
Bond Index 2023
