BOC in early redemption of bonds

Bank of Cyprus Public Company Ltd. (BOC) announced that it has decided to redeem the EUR 275 mln step-up floating rate subordinated bonds 2006/2011 at their principal amount plus accrued interest on 20 June 2006.

If the Bank had not redeemed the bonds, then the coupon of the Bonds steps-up from Euribor plus 120 basis points to Euribor plus 240 basis points after 20 June 2006. The Bank has obtained the approval of the Central Bank of Cyprus regarding the early redemption of the Bonds.

It is noted that on 4 May 2006, the Bank issued EUR 200 mln of step-up floating rate subordinated bonds due 2016 which bear a coupon of Euribor plus 60 basis points for the first 5 years from the issue date which then steps up by 100 basis points for the five years thereafter.