Local
articles | 09 July 2014

Cyprus said to consider second bond sale by September 2014

Cyprus is considering tapping the bond market by September 2014, according to two government officials directly involved in the process.

One of the officials, who asked not to be identified as no final decision has been made, said the initial offering will be for about €500 million ($680 million) and will probably be held after a share sale by the Bank of Cyprus, the country’s biggest bank.

The government is trying to build a yield curve for Cypriot sovereign securities, following a four-year exile from international markets, which left the country dependent on a €10 billion lifeline of emergency loans from the euro area and the International Monetary Fund.

The September issue would be the second bond sale after a June offering, which saw Cyprus raise €750 million in a sale of five-year notes to yield 4.85%. The sale will also help the government replace internal short-term borrowing with cheaper longer-term financing, one official said.

Last month, Cypriot Finance Minister Haris Georgiades said the country would issue new bonds once market conditions improve.

Cyrus was granted a €600 million aid tranche yesterday, as officials representing the country’s lenders said its economic adjustment program is on track and recession is bottoming out.

Bank of Cyprus said on July 4 that it will “explore investor interest for a potential capital increase,” following an ultimatum by Central Bank Governor Chrystalla Georghadji to raise at least €1 billion in new capital by Aug. 8, before euro-area bank stress tests.

Source: Bloomberg

Cooperation Partners
  • Logo for Cyprus Shipping Chamber
  • Logo for Invest Cyprus
  • Logo for CFA Cyprus
  • Logo for Cyprus Investment Funds Association
  • Logo for Ministry of Energy, Commerce, Industry and Tourism
  • Logo for Association of Cyprus Banks
  • Logo for Cyprus International Businesses Association
  • Logo for Cyprus In Your Heart
  • Logo for Cyprus Chamber of Commerce and Industry