Cyprus raises EUR 1 bln for 10-years at 4.625%

Cyprus successfully concluded its 10-year euro bond issue, raising EUR 1 bln at a coupon rate of 4.625% for 10-years, or at a 125 basis points spread over comparable German bunds. The 10-year bond yields 4.68%.
Finance Minister Charilaos Stavrakis said during a presentation that the 125 bps spread is considered as a success, considering the tough market conditions and the widening of spreads for Greece, which concluded a EUR 5 bln issue for 5-years at a spread of 350 bps while Ireland, which enjoys a better rating that Cyprus recently concluded its 10-year bond issue at a spread of 150 points.

Fixed
Stavrakis told the Financial Mirror that while the coupon rate at 4.625% is fixed, Cyprus enjoys the option to move to a convertible rate at its discretion. He said the EUR 1 bln 10-year issue is part of the EMTN programme with a total ceiling of EUR 6 bln. Last year’s EUR 1.5 bln issue for 4-years at 3.8% was part of the programme.
Cyprus is rated Aa3 by Moody’s, A+ by S&P and AA- by Fitch.
The issue will expire in February 2020. The bonds will be listed on the London Stock Exchange.
(Extensive report in print edition of Financial Mirror)