BOC bond issue over-subscribed

Bank of Cyprus Public Company Ltd successfully completed the issue of EUR 200 mln Tier 2 Capital under the Bank’s EMTN Programme. The issue was oversubscribed, with the total subscription amount exceeding EUR 300 mln.

The Tier 2 Capital issue was in the form of Subordinated Bonds.

The Bonds were allocated to institutional investors, mainly from Greece, the United Kingdom, France and Italy.

The joint lead managers to the issue were Barclays Capital, UBS Investment Bank and Alpha Bank (no books). Natexis Banques Populaires also participated in the syndicate which was formed.

The Bonds are step-up subordinated floating rate notes in Euro. The Bonds bear a coupon of 60 basis points (0,60%) above the three-month Euribor and were issued at a re-offer price of 99,861%.

The Bonds mature in May 2016, but the Bank has the option to call them in May 2011, or thereafter. If the Bonds are not called in May 2011 the coupon steps up by an additional 100 basis points (1,00%). The Bonds will be listed on the Luxembourg Stock Exchange. The proceeds of the issue will strengthen the Bank’s capital base.