(Clarifies RPG ownership structure, )
By Robert Smith
LONDON, April 2 (IFR) - RPG Byty's high-yield bond prices
spiked massively in the secondary market this morning, after the
Czech property firm announced that it is targeting an IPO
through a holding company.
Under the listing plans, RPG Byty's shareholder, RPG
Property, will become fully owned by a Dutch holdco called Domus
BV. Domus then intends to apply for an official listing on the
Euronext Amsterdam, targeting an IPO in the second quarter of
2014, subject to market conditions.
RPG's outstanding bond, a EUR400m 7NC3 it priced at par to
yield 6.75% in April 2013, jumped more than four points in cash
terms this morning, from a bid of 102 to 106.40, according to
Any investors that bought the bonds at the lows could have
realised a paper profit of more than 14 points. The bonds were
bid as low as 92.25 in June last year, hit in part by the
sell-off across high-yield and emerging markets credit after the
Federal Reserve's announcement of QE tapering.
The bonds have been bid above par throughout 2014, however,
weathering the more recent sell-off across emerging market
RPG Byty is the Czech Republic's largest privately owned
residential real estate company. Its property portfolio is
entirely in one region, Moravia-Silesia.
RPG's bonds have in the past also been hit by negative
sentiment around New World Resources (NWR), whose unsecured
bonds are trading at less than 16% of par value after a
The connection is due in part to the fact that the BXR Group
holds a majority interest in RPG as well as NWR. Zdenek Bakala
and his family are BXR's largest shareholder, they have a
50%stake in the group. The mining industry is also one of the
largest employers in Moravia-Silesia, with an NWR subsidiary the
main mining company in that region.
RPG has been keen to downplay its link to NWR in the past,
however. On an investor call in June last year, for example,
RPG's COO Pavel Klimes addressed investor concerns on this
matter, stating that only around 8% of its tenants are linked to
NWR and the mining industry.
(Reporting by Robert Smith; Editing by Philip Wright)