RegioJet financing growth through bond sales

by   CIJ iDesk I
2020-06-23   10:49

The privately owned train and bus operator RegioJet has sold CZK 447m in bonds, funds it plans to use on expanding its fleet and to pay off existing bank debts. The issuance is an expansion of the covered bonds its sold last year, which are due for reimbursement in 2024. The majority of RegioJet's lines are back in operation and tickets sales are approaching pre-crisis levels. "We'll be buying dozens of new vehicles and we're preparing to operate new routes," said spokesman Petr Kohoutek. "An example could be our extremely successful connection to Croatia," he said, adding that trains to Hungary, Poland and Ukraine will also be established. RegioJet's pricing structure has enabled it to operate with an annual average occupancy rate of 86 percent, with many of its lines selling out during peak times ahead of time. Its competitors, Flixbus and Leo Express are also stepping up service to foreign destinations as of the beginning of July.