Cyprus launches bond for retail investors

23/04/2014
Debt-ridden Cyprus aims to return to international financial markets by March 2016 and an initiated savings bond programme for retail investors will be a ‘small, first step’.

This is what Finance Minister Haris Georgiades told state radio on Tuesday, adding that the return to international markets is a gradual process that starts from home.

“These bonds, to be launched in June, will be a credible investment option featuring liquidity, low risk levels and a satisfactory interest rate,” Georgiades said.

“The President has already said that our aim is to have Cyprus return to the international financial markets by end of March 2016…the savings bonds will be a small, first step,” he added.

Cyprus has been shut out of international financial markets since May 2011, necessitating a bailout from the EU, ECB and IMF in early 2013.
The harsh bailout agreement signed between the government and its Troika of lenders ends on March 31, 2016.
The Minister explained that 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 monthly issue is €1,000 and the first bond offering — to be open only to individuals, not companies — will be on June 2.

The Cyprus Stock Exchange will be accepting applications from May 2 to 20.
The bond offerings to follow will open on the first working day of the month and the applications should be submitted during the first 20 days of the previous month.

For example, the second offering will be on July 1 and applications should be submitted from June 2-20.
The bonds will be issued by the Finance Ministry and made available to the public through the CSE.
Applications that are filled out can be returned either in person at the CSE or through the post office.

 

 


 

LEPTOS ESTATES KEY PROJECTS

View All Projects

Adonis Beach Villas

A state-of-the-art project, Adonis Beach Villas is an address that will take your breath away from the moment you enter. Set in one of the most desirable locations in ...


Coral Seas Villas

Coral Seas Villas is located on the coastline in a generally pristine area within walking distance to the Coral Beach Hotel, a 15 minute drive to the metropolitan city of...

Kamares Village

Leptos Estates has created one of the most exclusive developments in Cyprus that is amongst the most distinctive in the Eastern Mediterranean, Leptos Kamares Village. Thi...

Limassol Del Mar

An excellent seafront development, in ultra-desirable coastal Limassol, Cyprus, with unobstructed sea views from all apartments. This landmark development consists of ...