CySEC approves Hellenic Bank bond issue

The Cyprus Securities and Exchange Commission approved Hellenic Bank’s Supplementary Prospectus to issue up to CYP 12 mln 2016 Debentures (HBDF) with maturity date 1 July 2016. The issue date of the third Series of the 2016 Debentures is set on 27 April 2007.

The 2016 Debentures will carry a variable interest rate of 80 bps above LIBOR at the beginning of each quarter (31 March, 30 June, 30 September and 31 December) for the first five years, whilst for the remaining period (if not redeemed by the Bank) interest will be set at 150 bps above LIBOR.

The first interest rate of the Third Series 2016 Debentures has been set at 5.30%.

Egnatia Financial Services anticipate that the capital issue will positively impact HB’s overall financial strength and enhance its capital base, thus enabling HB to strengthen its expansion. Egnatia note that in mid July 2006 the Bank replaced the 2006/11 Debentures with these new 2006/16 Debentures aiming to reduce the cost of funding of the Bank (c. 50bps) and thus increase NIMs and profitability.