Insider Economy Fund managers take the lion’s share in 15-year bond issuance

Fund managers take the lion’s share in 15-year bond issuance

Fund Managers took the lion’s share in the issuance of the first ever 15-year bond by Cyprus, with 55% of the allocations, followed by banks (20%) and insurance and pension funds (10%), the Ministry of Finance said on Wednesday.

According to the Ministry, the transaction saw a strong and diversified international participation, with domestic investors accounting for only 9% of the final allocations and 27% of the bonds placed in Germany, Switzerland and Austria.

“The Republic of Cyprus, rated BBB- (stable) by Standard and Poor`s, Ba2 (stable) by Moody`s, BBB-(stable) by Fitch and BBBL (stable) by DBRS, successfully launched its first syndicated transaction of the year, pricing a new EUR 1bn 15-year Reg S registered benchmark due 26 February 2034” said the Ministry of Finance.

The bond carries a coupon of 2.75% and was priced at 99.903%, it added. Citi, Goldman Sachs International and HSBC were mandated as joint bookrunners on the transaction.

“The objectives of the transaction were in line with the stated Public Debt Management Strategy of the Republic of Cyprus to continue building out an international bond yield curve, manage refinancing risk by smoothening out and lengthening the debt maturity profile, enhance investor relations and expand the existing investor base” the Ministry noted.

It said that the launch of the transaction followed the successful funding exercises completed over the course of 2017 by the Republic of Cyprus and its continued market access last year.

According to the Ministry, prior to the launch of the transaction, Cyprus had conducted extensive marketing efforts, targeting investors in London, Paris, Milan, Munich and Frankfurt. Based on positive feedback from these meetings, the issuer opted for the 15-year maturity and a target EUR 1 billion in size.

“Final demand of over EUR 8.1 billionn represents the largest orderbook achieved by a Republic of Cyprus benchmark transaction since the sovereign’s return to the international bond markets in June 2014” the announcement stressed.

“The deal was priced at 17:44 CET with a cash price of 99.903% and a re-offer yield of 2.758%, thereby offering a minimal new issue concession over the theoretical fair value of the transaction” it added.

“The success of this transaction highlights the strong support from the international investor base for the Republic of Cyprus” it noted.

Read more:

Top Stories

House Plenum votes against dissolution of Parliament

On Friday the House plenum debated a proposal by the Green party and independent MP Anna Theologou for the early dissolution of the body...

Adamos Adamou elected 12th President of the House of Representatives

Left-wing MP Adamos Adamou was elected unrivaled 12th President of the House of Representatives on Friday, with the votes of the majority of MPs,...

American Medical Center denies announced confirmed COVID case

The American Medical Center strongly denied a Health Ministry announcement alleging a confirmed case had been recorded there. The American Center pointed out that...

Health Ministry’s decision on three nurses

At the orders of Health Minister Konstantinos Ioannou, the procedures for the continuation of the employment of the three nurses at the Famagusta General...

The certificate for workers’ movement returns in Limassol and Paphos

The certificate for workers’ movement in Limassol and Paphos returns and those needing to move around in these two towns after 23:00 and until...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...