Cyprus announced it will tap two existing bonds maturing in 2024 and 2040 for a minimum amount of €500 million, in a bid to replace more expensive debt expiring by end-2020 with cheaper debt.
“The REPUBLIC OF CYPRUS, rated BBB- (stable) by Standard and Poors, Ba2 (positive) by Moody’s, BBB- (stable) by Fitch and BBBL (stable) by DBRS, has mandated Citi, Deutsche Bank, Goldman Sachs International Bank and HSBC for a dual-tranche re-opening of the Republic’s existing RegS, CACs benchmarks (registered form) maturing on 3rd December 2024 and 21st January 2040, with a minimum size of EUR250mn for each tranche. Listing London Stock Exchange (Regulated Market). Denoms 1k+1k. English Law. The transaction is expected to be launched in the near future subject to market conditions. FCA/ICMA stabilisation applies,” a market announced said.
This will be the second time the Ministry of Finance and its advisors opt to reopen existing bonds. In September 2019 the MoF reopened existing bonds maturing in 2034 and 2049 securing €100 million and €250 million respectively.