Czech Defense Firm Increases Junk Bond Sale to $2.16 Billion

Armaments maker Czechoslovak Group AS raised $2.16 billion through a junk bond sale, more than double its original intention, highlighting the relentless clamor for the defense sector among credit money managers.

The Czech company, a supplier to Ukraine in its war against Russia, sold $1 billion of dollar bonds and €1 billion ($1.16 billion) of euro notes, well above the initial offer size of $500 million and €350 million, respectively, according to a person familiar with the transaction. The dollar notes priced at a final yield of 6.5% and the euro tranche at 5.25%, the person said, well below the initial price thoughts.