FINANCE: Cyprus raises EUR 1.5 bln from oversubscribed ten-year bond

Cyprus successfully issued 10-year European Medium-Term Note (EMTN), oversubscribed by more than five and a half times, raising €1.5 billion with an interest rate of 2.4%.

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Minister of Finance Harris Georgiades tweeted that the result “constitutes a vote of confidence for the Cypriot economy” and is a vindication of the responsible decisions and the great efforts undertaken by all productive forces of Cyprus.

The demand for the Cypriot bond amounted to €5.7 billion, while the Ministry of Finance`s initial goal was to raise €1 billion.

The issuance date of the 10-year bond is the 25 September 2018. The Republic of Cyprus’ initial goal was an interest rate of 2.6% and finally received lower, at 2.4%.

The Public Debt Management Office said that on the 18 September, the Republic of Cyprus has proceeded with a new issue of a 10-year bond of € 1.5 billion at an interest rate of 2.375% (2.40% yield).

Government spokesman Prodromos Prodromou welcomed the development noting that after the return of Cyprus to investment grade, as well as accession to the government bond purchase programme by the European Central Bank, the bond issue “is a vivid example of Cyprus' new prospects”.

Cyprus has a credit rating of Ba2 (stable) / BBB (stable)/ BB + (positive) / BB (positive) (Moody`s / S & P / Fitch / DBRS).