Insider Economy Cyprus Republic's bonds investors from wider geographical spectrum

Cyprus Republic’s bonds investors from wider geographical spectrum

The Cyprus Republic’s recent double bond issuance has made clear that investors now come from a wider geographical spectrum.

And that fund managers and banks had expressed preference towards the highest-valued bonds, Phileleftheros reports.

Over 85% of the bids for both types of bonds came from investors outside Cyprus. The majority were from the United Kingdom (22.5%), Germany, Austria, Switzerland (15.5%), Cyprus 15%, Scandinavia (11.5%), France (6.5%), Greece (6%), Southern Europe (6.5%), rest of Europe (5%), northern Europe (4.5%), and rest of the world (7%).

It is also clear that there is a steady interest in Cypriot bonds of this type from Greek investors, considering that their participation goes back to 2016. As for the category of investors, those who stand out are fund managers, banks/private banks and hedge funds.

Since Cyprus began its gradual return to capital markets back in 2014, investors’ interest in lending was there. But five years ago the cost was much higher and the 5-year bond interest rate stood at 4.75%. Lenders from Cyprus accounted for 14.5%, from Europe (excluding the United Kingdom) 23%, from the UK 45% and the rest of the world 8.5%.

The equity sector’s participation was dominant with about two-thirds of turnover coming from fund managers (51%), hedge funds (27%) and banks (22%). In 2015, Cyprus borrowed at an interest rate of 3.875% for a 7-year bond worth €1 billion.

And investors from Cyprus were only 1% of the issuance, 62% from the UK, 15% from Germany, Austria and Switzerland, 8.5% from Southern Europe, 4.5% from France/Benelux, 3% from the Middle East and Asia and 0.5% from the rest of Europe. There was also a 10-year bond issuance in 2015, at the rate of 4.25%.

Investors from Cyprus accounted for 15.5% of the issuance, 61.5% from the United Kingdom, the rest of the euro area 7.5%, Switzerland 3.5%, Scandinavian countries 2.5%, and offshore US 2.5%.

In 2016, Cyprus borrowed through a 7-year bond at an interest rate of 3.75%. Investors were from the UK 28%, US (offshore) 24%, rest of Europe 16%, Cyprus 14%, Germany/Austria 12%, Greece 5%, rest of the world 1%.

In 2017, Cyprus took advantage of the economy’s stable conditions and upgrades by DBRS and S&P credit rating agencies and issued a new 7-year bond. The borrowing rate was 2.75%, and investors from the UK made up 35% of the final allocation.

The latest double bond issuance will meet Cyprus’ borrowing needs and has already re-paid an International Monetary Fund (IMF) rescue loan.

 

Read more:

https://in-cyprus.com/finmin-accepted-applications-for-6-year-bonds-of-e4-94-m/

 

Top Stories

Trump’s push to reopen schools part of bid to boost suburban standing

President Donald Trump's demand for U.S. schools to fully reopen this fall amid the coronavirus pandemic is central to an emerging re-election strategy that...

Pope ‘very pained’ by decision to turn Hagia Sophia museum into mosque

  Pope Francis said on Sunday he was hurt by Turkey's decision to make Istanbul's Hagia Sophia museum a mosque, the latest religious leader to...

Paphos: 7 injured in traffic collision

  Seven people have been taken to hospital after a collision between two cars that occurred on the Droushia-Latchi road a little after 1 pm...

11 of 18 latest coronavirus cases imported (infographics)

    Eleven of the 18 new coronavirus cases reported in the 14 days of June 26 to July 9 are imported and 89% of them...

Britain to spend 705 mln pounds on EU border infrastructure

    Britain will spend 705 million pounds on border infrastructure to help keep trade flowing after its transition deal with the European Union expires at...

Taste

Kolokasi (Taro Root)

Ingredients: (Serves 4) 1 kg kolokasi (taro) root ½ kg pork (lean belly pork or shoulder) cut into large cubes 6 tbsp olive oil 1 head of fresh celery,...

Moungra

Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...