Bloomberg posted a notification on Monday confirming that a new 15-year bond is due to be issued by Cyprus.
“The Republic of Cyprus, rated BBB- (stable) by Standard and Poor’s, Ba2 (stable) by Moody’s, BBB- (stable) by Fitch and BBL (stable) by DBRS has mandated CITI, Goldman Sachs International and HSBC to lead manage a new 15-year EUR-denominated Reg S benchmark (registered form).
“The issue is expected to be launched in the near future subject to market conditions,” Bloomberg said.
According to Insider sources, the new bond’s auction book is all set to open on Tuesday and its target is to raise at least 1 billion euros.
It appears that for the first time in its history, the Republic of Cyprus will issue a 15-year bond given the over-concentration of loan maturities by the end of 2031.
Up until 2015 most investors in Cypriot bonds came from the United Kingdom, but this changed over the past decade with 34% of bond holders coming from European countries, 28% from the United Kingdom, 19% from Cyprus and 14% from Germany, Austria and Switzerland.
In relation to the type of investor, 42% of the bonds are held by fund managers, 40% by banks, and very low percentages by hedge funds, insurance companies and pension funds.