BOC places 12 mln NPL shares

Bank of Cyprus Public Company Ltd announced the completion of the placement of 11.964.792 Bank of Cyprus shares, representing 2,18% of its issued share capital. The placement price was €7,05 (C£4,05) per share and the placement was oversubscribed.

The placement agent was J.P. Morgan Securities Ltd. The placement, which was done by way of an accelerated bookbuilding, attracted strong demand from international institutional investors mainly from the United States of America, United Kingdom and Germany.

The shares which were placed had been acquired by Bank of Cyprus and represent collateral against legacy non-performing loans of Bank of Cyprus.

The transaction is expected to reduce commensurately Bank of Cyprus’ non-performing loans. The placement of the shares raised EUR 84.22 mln or CYP 48.4 mln, which will be used to reduce the NPLs, and probably bring the ratio to loans down to 54%.

The shares were held by four Luxembourg based companies, possibly used during the 2000 flotation on the ASE, when Cypriot concerns were used to cover a shortfall in the issue. According to reliable sources, the four companies are Investimex Holdings SA for 5.48 mln shares, Tassin Holdings SA for 3.24 mln shares, Coredo Holdings SA for 1.05 mln shares and Escala Holdings SA for 2.18 mln shares.