Bank of Cyprus draws €300 mln from market

The involvement complaint connected the caller subordinated enslaved (Tier 2 capital), amounting to 300 cardinal euros, issued by the Bank of Cyprus, was acceptable astatine 4.25%.

The bonds were issued astatine a terms adjacent to 99.632%, mounting the yield astatine 4.32% – from 4.67%, which was the archetypal estimate.

At the aforesaid time, the slope has invited the holders of existing securities amounting to €300 cardinal and maturing successful October 2031 to opt for aboriginal redemption betwixt April and October 2026 with a acquisition terms adjacent to 102.3% of the nominal value of the securities.

The last pricing of the caller enslaved carries a spread of 195 ground points – 35 ground points little than the archetypal pricing denotation – and arsenic slope sources comment, “the spread is overmuch amended than the existing enslaved that the slope is refinancing.

It is besides adjacent little than that of the past elder preferred enslaved contented and astatine the aforesaid oregon adjacent amended levels than Greek bonds.”

The proceeds from the issuance of the caller securities are to beryllium granted successful the signifier of a indebtedness by BoC Holdings to its subsidiary, Bank of Cyprus, to beryllium used for financing purposes.

The indebtedness is expected to conscionable the conditions to beryllium counted arsenic further Tier 2 superior for the bank.

As announced, the issuance saw important demand, attracting involvement from much than 100 organization investors.

The last connection publication exceeded €3 billion, was oversubscribed much than 10 times and, arsenic the slope comments, “both the strong information of organization investors and the last pricing bespeak the designation of the group’s strong fiscal illustration by the markets.”