Cyprus Raises €1.5 billion from Ten-Year Bond

19/09/2018

The Republic of Cyprus has issued a ten year European Medium-Term Note (EMTN) which was oversubscribed by more than five and a half times.  The Republic raised €1.5 billion with an interest rate of 2.4%.

Minister of Finance Harris Georgiades wrote in his account on twitter that the result constitutes a vote of confidence for the Cypriot economy and is a vindication of the responsible decisions and the great efforts undertaken by all productive forces of Cyprus.

According to the Cyprus News Agency, the demand for the Cypriot bond amounted to € 5.7 billion, while the Ministry of Finance`s initial goal was to raise € 1 billion.

The issuance date of the ten year bond is the 25th of September 2018. The Republic of Cyprus’ initial goal was an interest rate of 2.6% and finally received lower, at 2.4%.

A press release by the Public Debt Management Office of the Ministry of Finance says that on the 18th of September, the Republic of Cyprus has proceeded with a new issue of a ten-year bond of € 1.5 billion at an interest rate of 2.375% (2.40% yield).

Meanwhile, in a written statement, Government Spokesman Prodromos Prodromou has welcomed the development noting that after the return of Cyprus to investment grade, as well as the accession of Cyprus to the government bond purchase program by the European Central Bank, today`s successful edition is a clear example of the new perspectives for Cyprus.

The Republic of Cyprus has a credit rating of Ba2 (stable) / BBB (stable)/ BB + (positive) / BB (positive) (Moody`s / S & P / Fitch / DBRS).