Cyprus issues 10-yr bond

Cyprus issued a benchmark 10-year one billion euro bond with a yield of 4.25% on Tuesday, its first since 2010, indicating growing confidence in the economy which officially exited recession in the first half of the year.Offers for the bond reached €2.8 bn.

“It’s done. Successful market issuance of new 10-yr bond, 1bln at 4.25%, lowest ever pricing for a 10-yr bond for Cyprus,” Finance Minister Harris Georgiades said on his Twitter account.

In statements to the press later, Georgiades said the country’s creditworthiness has substantially been restored.

He added that €450 million of the one billion euros will be immediately used to exchange bonds maturing in the period 2019-2020, while the remaining approximately €550m will boost state cash reserves and help the management of public debt for the period after Cyprus exits the financial support program.

This is the third time since the start of the economic adjustment program in 2013, that Cyprus has tapped international markets. Cyprus last issued a €1bn bond in April with a maturity of seven years and a yield of 4%.