The office said it received 38 applications ranging between €5,000 and €1,005,000 with an average of €94,616.

Applications were received until last Friday, September 19, while the issue date will be October 1.

It was the fifth auction of the savings bond programme for retail investors issued on a monthly basis. The ministry aims to collect €10 million per month.

The next series of bonds, expiring in 2020, will be issued on November 1 with the auction held between October 2 and 20.

The six-year bonds will bear a 5.75% coupon until maturity but can be redeemable with a lower interest rate starting at 2.75% two years after acquisition.
The minimum subscription for the issue is €1,000.

In a noted departure from the amount received in August, €8.9 million, this month’s yield marks a return to normal levels raised in previous months’ issues – €3.1 million in July and €4.3 million in June.

The first auction last May had raised €7.04 million amid increased anticipation of Cyprus’ imminent return to international credit markets.

Finance Ministry sources attributed the decreased investor appetite to the expiry in mid-August of an incentive scheme offering international investors Cypriot citizenship with the purchase of €5 million in government debt.

But while this would also explain the investment spike in August, it does not preclude the possibility of negative outlook by investors with regard to the island’s economic prospects, at least in the short-term.

Source: Cyprus Mail