Advisement by our legal team to Emma Capital for a groundbreaking dual-issuer bond offering, totaling CZK 2.5 billion in Czech Republic and €50 million in Europe, secured by senior notes.
Emma Capital Launches Innovative Dual-Issuer Note Programme
Emma Capital, a private investment holding company with a focus on long-term value creation, has established a groundbreaking dual-issuer note programme, marking a significant milestone in the Czech capital markets. This programme, governed by Czech law, is the first of its kind to involve a dual-issuer structure, combining Czech koruna and euro-denominated notes issued by Emma Finance CZ and Emma Finance SK.
The debut issuances under this programme include CZK 2.5 billion notes and €50 million notes, offering a new instrument governed by Czech law and admitted to trading on the Prague Stock Exchange. This innovative approach provides flexibility for the issuer and access to both Czech and Slovak retail and institutional investors.
The notes benefit from a shared guarantee by the group holding company, Emma Alpha Holding Ltd, and shared security over certain shares in Premier Energy Plc, a publicly traded company. This structure enhances the security and appeal of the notes to investors.
White & Case LLP, a global law firm with expertise in Capital Markets, Private Capital, Central & Eastern Europe, and the Czech Republic, played a significant role in advising Emma Capital on the establishment of this dual-issuer note programme. The firm's team, led by partner Petr Hudec, counsel Petr Smerkl, associate David Mikyska, and legal intern David Eyem, based in Prague, provided legal counsel on the issuance of senior guaranteed and secured notes, ensuring regulatory compliance, and helping integrate the notes into the relevant financing and market frameworks.
The transaction required coordination across more than four jurisdictions, demonstrating the firm's ability to manage complex, cross-border transactions. David Mikyska, who specializes in Capital Markets, was instrumental in the structuring and execution of the programme.
J&T IB and Capital Markets, a.s. acted as arranger, and J&T BANKA, a.s. as manager for the transaction. This deal is the first dual-issuer programme approved by the Czech regulator and one of the rare issuances of notes secured by shares in a publicly traded company.
The implications of this programme are far-reaching. It expands financing opportunities governed by Czech law, which may increase investor confidence and the appeal of Czech capital markets. The programme also facilitates cross-border capital raising through dual currency issuance in a single legal framework, providing a precedent for future transactions that combine different currencies and jurisdictions under Czech law.
In summary, the programme's key unique feature is its status as the first Czech-law-governed dual-issuer note programme with multi-currency issuance, and White & Case LLP was instrumental as legal advisor enabling this market innovation and compliance. This transaction is a testament to Emma Capital's commitment to innovation and the growing maturity of the Czech capital markets.
[1] Emma Capital Press Release, [insert link] [2] White & Case Press Release, [insert link]
- Emma Capital's innovative dual-issuer note programme, a milestone in the Czech capital markets, is the first of its kind to involve a dual-issuer structure.
- White & Case LLP, a global law firm, played a significant role in advising Emma Capital on this novel programme, providing legal counsel on the issuance of senior notes.
- The firm's team, based in Prague, included partner Petr Hudec, counsel Petr Smerkl, associate David Mikyska, and legal intern David Eyem.
- David Mikyska, who specializes in Capital Markets, was instrumental in the structuring and execution of the programme.
- The transaction, requiring coordination across more than four jurisdictions, demonstrates White & Case LLP's ability to manage complex, cross-border transactions.
- This deal is the first dual-issuer programme approved by the Czech regulator and one of the rare issuances of notes secured by shares in a publicly traded company.
- The programme offers a new instrument governed by Czech law, expanding financing opportunities in the Czech capital markets.
