BOC to raise CYP 110 mln in rights issue

The Board of Directors of the Bank of Cyprus has decided to proceed with a share capital increase in the form of a Rights issue in the ratio of 1 for every 6 shares at the price of CYP 1.40 or EUR 2.461 in a bid to raise CYP 110 mln (EUR 193 mln) in new capital for the bank.

Within the context of the above, the Bank will submit a Prospectus that has been prepared in accordance with the provisions of the EU Regulation 809/2004 for approval by the Cyprus Securities and Exchange Commission (the Cypriot competent authority following the transposition of the European Directive 2003/71/EC into local legislation).

The Board of Directors of the Bank decided that the Rights will be allotted to eligible shareholders in the ratio of one (1) new share for every six (6) existing shares. The exercise price will be CYP 1,40 (EUR 2,461) per share.

The Rights issue will be applicable to the Bank’s shareholders registered on both the Central Register/Depository of the Cyprus Stock Exchange (CSE) and the Dematerialised Securities System of the Athens Central Depository of the Athens Exchange (ATHEX), on the record date.

The record date, the date of introduction for trading and the trading and exercise periods of the Rights will be decided by the Board of Directors of the Bank and will depend on the date of approval of the Prospectus by the Cyprus Securities and Exchange Commission and will be announced accordingly.

The proceeds of the issue will be used to strengthen the Group’s capital adequacy and specifically the Group’s Tier 1 capital. The proceeds from the previous share capital increase of the Bank (exercise of Share Warrants 1999/2003 during October – November 2003) have been fully utilised in the strengthening of the Group’s capital.