Key Findings
EPH's issuance of green bonds in July 2025 is unlikely to significantly advance the company's transition plan, in IEEFA's view, because it does not appear to target decarbonisation of its largest source of emissions: fossil fuel power generation.
EPH's allocation of the green bonds it issued in May 2024 followed this same pattern, using the bonds to refinance non-power generation assets. This lowers investor clarity over project details, lookback periods and environmental returns.
EPH is transferring most of its coal assets to a sister company, but the climate-related risks associated with these assets will remain an EPH credit consideration.
EPH's debt maturity has improved following the bond issuance. However, climate transition factors will pay an increasing role as the company faces refinancing needs over the next three years.
Czech energy group Energeticky a prumyslovy holding, a.s. (EPH) continues to access the green bond market. On 2 July 2025, the company issued seven-year €500 million senior unsecured green bonds. This follows the company’s five-and-a-half-year €500 million senior unsecured green bond debut in May 2024 and return to international bond financing in November 2023.
More than a year after its inaugural green bonds, EPH has yet to exhibit a credible investment strategy aligned with its net-zero goals, and the latest green bonds will likely barely contribute to the company’s overall climate strategy, in IEEFA’s view. This highlights the need for investors to closely scrutinise green credentials during asset selection, particularly within the mandate of green bond-labelled funds.
EPH operates power plants across Europe, mostly fuelled by gas and coal. Through its subsidiaries, it operates Slovakia’s gas transmission network and is involved in electricity and gas distribution in Slovakia, gas storage and other activities including district heat networks. In 2024, EPH reported €12.4 billion in revenue related to fossil fuels, representing 53% of its total €23.3 billion revenue. EPH is ultimately owned and controlled by CEO Daniel Kretinsky.
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