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KSB Prepares "Unique Legal Arrangement" for J&T Bank’s Perpetual Bonds

Czech Republic
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Kocian Solc Balastik (KSB) has advised J&T Banka on what it calls a “unique legal arrangement” in the Czech Republic: issuing bonds that offer investors a fixed yield with no maturity date. 

J&T Banka is a Czech private full-service bank that was established in 1998.

According to KSB, “stricter requirements on a bank’s capital structure have resulted in banks issuing hybrid instruments such as perpetual bonds, which are counted as Tier 1 capital. This marks the first time such an instrument has ever been issued in the Czech Republic. A number of issues had to be resolved beforehand, however, such as the legal structure and acceptability for the regulator.”

The firm reports that preparation work for perpetual bonds was more challenging than that for standard securities, but the process "culminated at the end of June 2014 when the Czech National Bank approved the prospectus and the perpetual bonds were offered to preselected investors.” KSB reports that interest of the preselected investors is said to be strong.

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JŠK, advokátní kancelář, s.r.o. (JŠK) is a medium-sized law firm based in Prague providing a comprehensive range of commercial legal advisory services in the Czech Republic. Our team consists of almost 30 lawyers, five of whom are partners with many years of experience from leading international law firms. We advise local and international clients from banking, insurance and various industry sectors, boast a respected projects practice, and work for the public sector at the federal and municipal level.

Ever since it was founded in 2004, JŠK has striven for the epitome of professionalism, expertise and ethical integrity. We continuously seek to surpass what large global law firms can offer and to give our clients a personal approach. All mandates are equally important to us regardless of size as we guide clients through both complex and seemingly routine matters.

Our clients turn to us for advice when implementing their business plans across all areas of commercial law. We are proud members of PONTES: the CEE lawyers, a unique network of law firms through which we provide services not only in the Czech Republic but also in Austria, Bulgaria, Hungary, Poland, Romania and Slovakia.

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