The issuance of corporate bonds by MCI Group, in the Czech Republic closed with great success. It is the first time that the capital for the purpose of new investments in MCI.EuroVentures 1.0’s companies was raised outside Poland.

Allen & Overy advised Česká spořitelna as sole lead manager, fiscal and paying, listing and security agent, in relation to the CZK 600 million (EUR 22 million) standalone secured and guaranteed Czech (domestic) bond issuance by MCI Venture Projects, an SPV of MCI.EuroVentures 1.0 fund guaranteed by the Polish MCI Capital, one of Central and Eastern Europe’s leading technological private equity / venture capital group.

This was the first-ever issuance of Czech law governed domestic bonds under a prospectus and subject to terms and conditions approved by the Czech National Bank which involved a cross-border security and guarantee package provided to investors in the bonds. The transaction was also the first deal ever to have used the parallel debt concept in the Czech law governed terms and conditions of the bonds, something which was instrumental for the relevant security to work in the context of other relevant laws.

Wojciech Marcińczyk, Vice-president of the Board at MCI Capital said: “The successful process of bond issuing in the Czech Republic is proof that MCI is a trustworthy brand. We continue our interest in that form of fundraising, along with active sales of investment certificates as well as acquiring equity from the stock exchange.”

Partner Václav Valvoda led the Allen & Overy team, assisted by senior associates Silvie Horáčková and Petr Vybíral, who coordinated the transaction alongside colleagues from A&O Poland and Turkey, and junior lawyers Tomáš Kafka and Martin Bytčanek.

Reflecting on the transaction, Václav said: “We were delighted to assist Česká spořitelna and MCI Capital with this innovative fundraising, as we aim for market firsts and cross border market firsts in particular.”

The original press release can be found here on Allen & Overy’s website.