Issuance activity: Tomorrow, MinFin is scheduled to auction CZK2.0bn of 2032 bonds, CZK2.0bn of 2034 bonds and CZK1.0bn of 2038 floater. Yesterday, the Ministry of Finance slashed the indicated issuance volume for March from the original CZK20.0bn to CZK10.0bn, while also reducing tomorrow’s issuance volume from CZK9.0bn to CZK5.0bn and removing the longest 2036 paper completely. Given that CZK107.4bn has been sold in the primary and secondary markets combined in the first two months, and the next redemption of maturing CZGBs is not until June, MinFin seems to have relatively ample room for manoeuvre.

Issuance activity: Tomorrow, MinFin is scheduled to auction CZK2.0bn of 2032 bonds, CZK2.0bn of 2034 bonds and CZK1.0bn of 2038 floater. Yesterday, the Ministry of Finance slashed the indicated issuance volume for March from the original CZK20.0bn to CZK10.0bn, while also reducing tomorrow’s issuance volume from CZK9.0bn to CZK5.0bn and removing the longest 2036 paper completely. Given that CZK107.4bn has been sold in the primary and secondary markets combined in the first two months, and the next redemption of maturing CZGBs is not until June, MinFin seems to have relatively ample room for manoeuvre.

Market situation: Rates in the CEE region underwent a massive sell-off on Monday, but this has mostly been reversed following President Trump’s indication in the evening of the potential for the conflict to end soon. On the Czech data front, CPI inflation stood at 1.4% yoy in February, which was 0.2pp below market consensus and the CNB’s assumption. The decline from 1.6% yoy in January is primarily due to lower food prices, while core inflation stood at 2.7% yoy. Wage growth in 4Q25 remained strong at 7.4% yoy, beating the median estimate by 0.4pp and the CNB forecast by 0.3pp (more information can be found here: https://bit.ly/Wages_4Q25_EN). Last week, Deputy Governor Jan Frait suggested that the recent global events may limit the scope for potential easing. However, he refused to indicate how he will vote due to the unclear situation. On Monday, MPC member Jakub Seidler told Reuters he believes discussions about raising interest rates are premature.

Rates outlook: Given that it is relatively well positioned to navigate the potential oil price shock with a slightly restrictive policy rate and headline inflation below the target, we expect the CNB to wait for more clarity rather than act pre-emptively in the current juncture. If the situation in the Middle East is resolved soon, the debate on rate cuts may resume due to low headline CPI. However, our baseline scenario remains that there will be no cuts this year, since we anticipate both headline and core inflation will pick up in 2H26.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares. It is unclear whether the current majority owner, Ceska zbrojovka Partners SE, will participate in the subscription. Ceska zbrojovka currently owns approximately 47% of the company, a stake that could shrink to 40% if it does not participate in the offering. However, it would still retain a majority stake.  

These steps could take place in the first half of this year. We would like to remind you that the last capital increase was related to the settlement of the SNC acquisition, when Colt issued 6,174,214 shares at a price of CZK 723 at the beginning of the year.