Cyprus Dev. Bank launches Multifix deposit for investors, institutionals

The Cyprus Development Bank, the recently privatised investment bank sold by the state to a group of investors for EUR 75 mln, has introduced the CDB Multifix 2007, a new deposit product aimed at private investors and corporates, as well as institutional investors.

The new product has a flexible term deposit for nine periods carrying a 5% interest rate for the six monthly schjemes from 1-month to 6-month depsoits, 4,75% for 12-month deposits, and 4,60% for both the 18-month and 24-month deposits.

The Multifix is denominated in CYP as well as euros and requires a minimum investment of CYP 10,000 (EUR 17,085).

The government agreed in November to sell its controlling stake in the CDB to a private investment group made up of high net worth Cypriots mostly based overseas for EUR 75 mln (CYP 43.8 mln), of which 88.01% was the share of the state and the remaining 11.99% was heldn by the European Investment Bank.

The new owners, Emerging Financial Partners, comrpise leading business people in Cyprus, Greece and the UK and is headed by Adonis Papadopoulos of Interorient Navigation Co. who also holds a significant stake in the CLR Group.

The Cyprus Development Bank with a 0.7% share of Cyprus’ lending market and own capital of CYP 25 mln (EUR 43 mln) was previously the subject of an arranged sale to the Piraeus Bank, which collapsed. It had also invested in the Krasnodar region of Russia where it established the Kuban Bank subsidiary.

Papadopoulos said his group plans to increase the CDB’s presence in the local market through the development of its branch network and also explore new opportunities abroad.

Some of the other shareholders of EFP include Andreas Pittas (Medochemie), Antonis Gerolemou and Panicos Katsouris (co-founders of Katsouris Fresh Foods, UK), Constantinos Shacolas (General Manager, J&P Overseas), K.J. Pittalis family (UK), ELA Group owned by Andreas Ellinas in Greece, Leventis and David families (3E Greece), Leonidas Ioannou (J&P), Portolano Maritime Inc. of Charalambos Mylonas and CLR Investment Fund.

The EFP joint venture was organized and is being guided by Spyros Papa, fund manager and businessman based in Greece and Neoclis Nicolaou.