12/05/2025
6 minute read
Czech utility ČEZ has four Sustainability-Linked Bonds (SLBs) outstanding – and one is nearing its 2025 target observation date. If the company does not achieve a Scope 1&2 emissions intensity of 0.26 tCO₂e/MWh by the end of this year, it has to pay a 0.75% premium payment at the bond’s maturity.
2024 data suggests progress has slowed, with the emissions intensity level flat at 0.27 tCO₂e/MWh, just shy of the target. While ČEZ’s 2025 projections assume historically high nuclear utilization, which could see the company achieve the target level.
The bond appears to trade wide to the curve, suggesting investors may be underappreciating the potential step-up or the uncertainty around ČEZ’s path to target.
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