Investors clamour for Bank of Cyprus bonds

Bank of Cyprus successfully issued €300 mln Tier 2 bonds that were oversubscribed four times as international investors showed confidence in the Cypriot economy.

The huge interest shown by investors for a Bank of Cyprus’ Tier 2 bond constitutes a vote of confidence in the Cypriot economy’s prospects during the pandemic, government spokesperson Kyriacos Koushos said.

“There is satisfaction over great investment interest by more than 140 institutional investors for Bank of Cyprus’ Tier 2 bond which was offered for up to €300 mln.”

“This is a vote of confidence for the Bank of Cyprus and the banking sector, but certainly for the Cypriot economy’s prospects, even more so when we are amid a pandemic.

The bond issue was four times oversubscribed, with the final pricing 37.5 basis points tighter than the initial pricing indication.

Some institutional investors participated for the first time, as total bidding reached €1.15 bln.

The prospect of the bank reaching the single-digit ratio of NPLs to total lending within the year also attracted investors.

The bonds will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

The issuance of the Notes further optimises the Group’s capital structure and is expected to increase the Group’s Total Capital ratio to 19.7%.