HB CYP 75 mln bond issue approved

Hellenic Bank Public Co. Ltd. announced that its prospectus for the issue and listing of new 2016 bonds and the listing of 2011 bonds has been approved by the Securities and Exchange Commission, which has permitted its publication.

The issue of 2016 bonds amounts to CYP 75 mln. The 2016 bonds will be issued in 1 to 4 different series that will be announced by the Bank before their issue. Series A will be up to CYP 75 mln and will be issued on July 1, 2006. All 2016 bonds will mature on July 1, 2016. The interest will be payable every three months in cash at the end of each period. The floating interest rate will be equal to the Bank’s base rate that will be valid from the beginning of the period plus 0.80%.

After July 1, 2011, the bonds, if not acquired by the bank, will bear an additional interest rate of 0.70%. As a result, the interest rate after July 1, 2011 (in case that the 2016 bonds are not acquired by the Bank) will be equal to the Base Rate plus 1.50%.

The Bank will be able to acquire the 2016 bonds on the fist Date of Interest Payment after July 1, 2011 and any other Date of Interest Payment after that date.

The 2016 bonds are not secured and in case of dissolution of the Bank, the priority will be given to the payment of Bank’s liabilities towards its depositors and other creditors and following the payment of Bonds. It will have the priority to the payment of rights of the holders of the Bank and the holders Capital Securities.

Following the issue of 2016 bonds, the Bank will apply to the CSE Council for the listing of bonds in the CSE. The lists of application will be open from May 29, 2006 until June 23, 2006. The minimum subscription amount is CYP 1,000.