UPDATE 1-Czech CEZ plans debt issues in crowns, euros

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Czech power utility CEZ plans to to return to foreign debt markets with a eurobond offering in the autumn under a new 4 billion euro medium-term note programme, the company said on Tuesday.

CEZ said it also decided to issue domestic bonds worth up to 10 billion crowns ($474.8 million), with short- to medium-term maturity.

CEZ said the planned debt issuance, which has yet to be approved by the firm's supervisory board, was aimed at helping finance a buyback of up to 10 percent of its shares.

State-owned CEZ, the largest Czech company with a market capitalisation of nearly $30 billion, is rated "A-" by Standard & Poor's and "A2" by Moody's.

It most recently tapped international markets in October 2006 with a 500 million euro with a 7-year, 4.125 percent coupon issue .

CEZ shares were up 0.1 percent at 1,076 crowns by 0803 GMT, slightly underperforming a 0.2 percent rise in the blue-chip PX index .

The government has agreed to sell a 7 percent stake in CEZ through the capital market with the help of bank Ceska Sporitelna. It gave no details on the form of the sale.

At the same time, CEZ is conducting the buyback, which will keep the state's stake in the company roughly unchanged at around 67 percent.

[PRAGUE/Reuters/Finance.cz]