Cyprus to tap capital markets for cheaper debt

Cyprus said it will tap two existing bonds maturing in 2024 and 2040 for a minimum amount of €500 mln in a bid to replace more expensive debt expiring by end-2020 with cheaper debt.

Cyprus rated BBB- (stable) by Standard and Poor`s, Ba2 (positive) by Moody’s, BBB- (stable) by Fitch and BBBL (stable) by DBRS, has mandated Citi, Deutsche Bank, Goldman Sachs International Bank and HSBC for a dual-tranche re-opening of the Republic’s existing bonds maturing on 3 December 2024 and 21 January 2040, with a minimum size of €250 mln for each tranche.

The transaction is expected to be launched in the near future subject to market conditions. FCA/ICMA stabilisation applies,” a market announcement issued said.

This will be the second time the Ministry of Finance and its advisors have opted to reopen existing bonds hoping to yield around €750 mln.

In September 2019, the Nicosia reopened existing bonds maturing in 2034 and 2049 securing €100 mln and €250 mln respectively.