CISCO takes lead in Cyprus capital markets

— Largest broker, IPO advisor and fund manager

 

CISCO, the investment banking arm of the Bank of Cyprus Group has taken the lead in Cyprus’ capital markets, becoming the largest firm in terms of brokerage, investment banking, IPOs and funds under management.

CISCO General Manager Anna Sofroniou Vafeades said the firm’s success was directly related to a proven track record, know-how and an experienced team, a competitive pricing policy and more than ever, the consistency and reliability of the Bank of Cyprus Group.

“We are particularly pleased that in addition to getting a bigger share of the market in all areas of activity, we are getting a lot of business from repeat clients and referrals, which is another indication of the respect that CISCO and Bank of Cyprus enjoy in the market,” Vafeadou told the Financial Mirror in an exclusive interview.

She added that an important factor for clients is the secure knowledge that CISCO is not short-term driven and its actions are specifically crafted to ensure the long-term benefit for the clients.

 

— Brokerage

 

CISCO has taken the lead as the financial services firm with the highest market share in terms of trades on the Cyprus Stock Exchange since the start of the year, excluding block trades (prearranged deals by sponsors) on the back of strong activity among its 18.000 retail and institutional clients.

CISCO online, the Internet-based trading platform has scored a phenomenal success as it currently provides 40% of all CISCO trades on both the Cyprus and Athens Stock Exchanges. With the commission fee at only 0.4% for both XAK and XA trades, CISCO online offers one of the lowest charges in the market. Cost alone is not its sole advantage, as the online platform allows for fast and secure placement of orders, continuous orders status, real time prices and portfolio valuation, technical analysis, official announcements and many other features.

“The new upgrade will allow our clients enhanced monitoring of corporate actions, financial announcements, financial performance and fundamental analysis, SMS features stop limit orders and other extended services,” said Marios Soupashis, Head Brokerage Services, adding that the upgrade should be finalized within the next three months. The upgrade will also take into consideration access to global markets which will be implemented at a later stage.

 

— Investment banking

 

CISCO’s reputation and track record as the firm with the best knowledge of CSE listing rules and compliance with the Cyprus Securities and Exchange Commission’s listing requirements, combined with the financial strength of the Bank of Cyprus Group has helped it grab the lead in new listings during 2007 and new listings in the pipeline.

Vafeadou said of the five new listings this year, CISCO was the Lead Manager for Ocean Tankers, Ermes Department Stores, Woodland Designs and co-advisor in the listing of Mitsides. The fifth new listing was Karaolis, which was only a placement of shares and CISCO acted as advisor to that as well.

CISCO’s Head of the IPO Department Constantinos Papanastasiou added that among the new listings, CISCO is also a leading player. According to announcements made by the N.K. Shacolas Group referring to forthcoming applications to be filed by SuperHome, ITTL and Limni Golf Courses to list on the CSE, all three have given the mandates to CISCO.

PrimeTel, another leading company having applied to list on the CSE has recently appointed CISCO as co-lead advisors. A ship-owning company and another two issues are also in the pipeline. CISCO is also the lead manager in the forthcoming rights issue by Cyprus Airways for CYP 14 mln, which based on deal size, gives it the lead.

CISCO also acted as advisor in the majority of public offers and M&A deals this year either advising the offeror or the offeree. It acted as advisor to Dolphin Capital Atlantis for Aristo Developers (EUR 290 mln), to CTC for Woolworth (EUR 180 mln) and advised a series of target companies (Athena Investments, Lanitis Development, White Knight, etc).

Command of the local market however, is not CISCO’s only priority, which under Vafeadou wants to spread its wings in tandem with the expansion plans of the Bank of Cyprus Group and attract Russian, former CIS and other overseas and Greek firms to seek a listing on the CSE.

Cyprus’ low tax rate, relatively low and competitive professional (accountants, investment banking, legal) and Exchange listing costs, combined with the fact that all companies listed on the CSE for at least 18 months are eligible to gain an automatic entry into other developed European exchanges under the “single passport” EU directive, are seen as good reasons for foreign companies to seek a listing on the CSE through CISCO.

 

— Fund management

 

CISCO is the largest fund management company in Cyprus with more than EUR 400 mln of funds under management, of which EUR 78 mln belong to Cytrustees Investment Public Company (CYTR). The rest are from provident funds, insurance funds (including Eurolife), high net worth individuals, listed or non-listed investment companies and trusts. Client mandates cover all asset classes and geographical regions – Cyprus, Greece or foreign capital markets.

Demetris Taxitaris, CISCO Fund Manager, said the returns depend on the risk profile, investment target and the mandate that the various funds give to CISCO, with some adopting a very conservative approach of minimal shares, mostly bonds, while others opt for a more aggressive portfolio mix, allowing for higher capital gains.

The recent change in the law, according to which provident and pension funds with more than 100 members should appoint advisors and managers is seen as beneficial for the likes of CISCO, which has the know-how and experience to provide a complete service in cooperation with the funds’ investment committees.