Krápinec: České dráhy earn best rating in company history as bond demand quadruples supply

CEO of České dráhy Michal Krápinec has reported record investor interest in the company's eurobonds: demand for the €500 million issue peaked at over €1.8 billion, while ratings agency Moody's gave the carrier its best-ever rating — Baa1.

In spring 2026, the national rail operator issued eurobonds that sparked intense demand from European financial institutions. "Total demand was almost four times the amount offered, which is quite rare for state-owned companies in the Central and Eastern European region," Krápinec notes.

Around 150 investors from across Europe took part in the placement, mainly from German-speaking countries as well as Central Europe and the UK. The bulk came from experienced asset managers, followed by commercial banks, insurance companies and pension funds. The specific investors remain confidential, but the strong market response allowed the company to achieve the lowest credit spread in its entire history on the eurobond market.

According to Krápinec, the bet was placed specifically on institutional investors: "A €500 million eurobond is an instrument that primarily makes sense for banks, insurance companies and investment funds — and that's exactly where we found our audience." The company does not currently view retail investors as its main target, as it doesn't want to turn its bonds into a mass savings product.

Market interest is backed by solid financial results: the company's economic performance grew by 46% year-on-year. In passenger transport, České dráhy posted a profit of CZK 2.4 billion and carried 168 million passengers. Importantly, the rise in profitability hasn't come at the expense of service reliability — last year was the best for punctuality in a decade, with more than 88% of trains arriving on time.

"It's important to understand this isn't a one-off result, but a combination of returning demand and the long-term steps we've taken in previous years. At the same time, we're improving our financial performance during a period of large-scale investment — that's a key signal for investors too," Krápinec stresses.

The company is channelling the funds raised exclusively into long-term development rather than operating costs. The results are already visible on the tracks: České dráhy is currently carrying out the largest fleet renewal in its history. If all the new trains and locomotives were lined up end to end, they would stretch nearly 18 kilometres. The fleet has been expanded with modern RegioPanter and RegioFox units, four battery-powered trains in northern Moravia, while long-distance service has been boosted with 20 ComfortJet trains, which now run not only to neighbouring countries but also to Denmark. Further investment worth tens of billions of crowns is planned, primarily in electric and battery-powered trains for regional services.