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CEZ a.s. Amendment and Extension of 88,000,000 Guarantee Facility Agreement in favour of European Investment Bank.

9. 4. 2003

Others

CEZ a.s. Amendment and Extension of 88,000,000 Guarantee Facility Agreement in favour of European Investment Bank.

CEZ a.s. and Sumitomo Mitsui Banking Corporation Europe Limited ("SMBCE") together with a syndicate of leading International Banks, signed on 8th April 2003, a ?88,000,000 guarantee facility in favour of the European Investment Bank ("EIB").

The joint stock company CEZ is a Czech utility company.  It was established on May 6, 1992 by the National Property Fund of the Czech Republic as one of the new entities formed after the break-up of the former state-owned Czech Power Works.  CEZ produces about three quarters of the electricity in the Czech Republic. It operates ten fossil powered stations and one combined heat and power station, thirteen hydro power stations, two nuclear power station and one wind power stations. CEZ also owns 34% stake in the 220 and 400kv high-voltage transmission grid.  Having 7,250 employees at the end of 2002 and the capacity of 11,146 MW, CEZ ranks among the medium-sized electricity utilities in the world. As of April 1, 2003, CEZ has acquired majority stakes in five regional distribution companies and minority stakes in three of them. The company simultaneously transferred its 66% stake in the transmission grid - CEPS. However, the Antimonopoly Office decided that CEZ had to sell one majority and three minority stakes and also its remaining 34% stake in CEPS. This transaction will bring 21 billion CZK to the Czech state treasury. By incorporating the regional distribution companies into the CEZ Group, the organisational structure of the Czech power industry returned to a system practiced in most West European countries.

David Svojitka Chief Financial Officer, CEZ a.s.

The successful finalization of the extension confirms CEZ's standing as one of the top Czech corporate borrowers. It is in line with the recent announcement of Standard & Poor's raising its outlook for CEZ's rating from stable" to positive".

Mark Gordon Assistant General Manager, Sumitomo Mitsui Banking Corporation Europe Limited

We are delighted with the success of this transaction.  The facility was launched at -88m and was oversubscribed with over -130m being raised in syndication.  The quality of the bank syndicate is testament to the high regard in which CEZ is held in the loan market."

The facility has a 5 year maturity and carries a guarantee fee of 0.60% per annum.  The full syndicate is as follows:

Mandated Arranger

Sumitomo Mitsui Banking Corporation Europe Limited

Arranger

Kreditanstalt fur Wiederaufbau

Co-Arrangers

           

ABN AMRO Bank N.V.

            Bank Austria Creditanstalt AG

Bayerische Landesbank

            Credit Lyonnais

            Dresdner Bank A.G.

            Mizuho Corporate Bank, Ltd

            SANPAOLO IMI S.p.A.

            WestLB AG

 

Facility AgentSumitomo Mitsui Banking Corporation Europe Limited

 

For further information, please contact:

 

CEZ a.s.

Hana Eliasova

Tel:       +4202.7113.2374

Fax:     +4202

E-mail:  eliash1.hsp@mail.cez.cz

 

SMBCE

Mark Gordon, Assistant General Manager

Tel:       +44.207.786.1303

Fax:     +44.207.329.6915

E-mail:  mark_gordon@gb.smbcgroup.com