The successful issuance of a €300 million senior preferred bond, which attracted interest from more than 120 investors, with total orders exceeding €1.7 billion, was announced by the Bank of Cyprus.
Specifically, Bank of Cyprus Holdings Public Limited Company announced via the Cyprus Stock Exchange that on 13 May 2026 the Bank successfully completed the issuance and pricing of a €300 million senior preferred bond under its Euro Medium Term Note (EMTN) Programme.
The bond was issued at a price of 99.822% and carries a fixed annual interest rate of 3.875%, payable annually in arrears until the Early Redemption Date on 20 May 2030, with a yield of 3.924%.
The bond matures on 20 May 2031, however, the Bank has the option to redeem it early on the Early Redemption Date, subject to certain conditions (including obtaining the necessary regulatory approvals), as set out in the Terms and Conditions.
If the Bond is not redeemed on the Early Redemption Date, the interest rate from that date until maturity will become floating, set at 3-month Euribor plus 100 basis points, payable quarterly in arrears.
Settlement of the bond is expected to take place on 20 May 2026, and the Bond will be listed on the Euro MTF market of the Luxembourg Stock Exchange.
The issuance saw strong demand, attracting interest from over 120 institutional investors. The order book was approximately six times oversubscribed, exceeding €1.7 billion (peaking at €1.9 billion), with final pricing 30–35 basis points tighter than initial price guidance.
The success of the transaction, both in terms of investor participation and final pricing, demonstrates market recognition of the Group’s strong financial profile.
The Bond is expected to qualify for Minimum Requirement for Own Funds and Eligible Liabilities (MREL), thereby contributing to the Bank’s MREL requirements.
The transaction improves the Bank’s MREL ratio (as a percentage of risk-weighted assets (RWAs)) by approximately 284 basis points, maintaining a comfortable buffer above current MREL requirements, which stand at 24.03% of RWAs and 5.91% of the leverage ratio exposure (LRE), requirements that the Bank must meet on an ongoing basis.
BNP Paribas, BofA Securities Europe SA, Deutsche Bank AG and Goldman Sachs Bank Europe SE acted as Joint Lead Managers for the issuance, while Bank of Cyprus Public Company Limited acted as Co-Manager.
Sidley Austin LLP acted as legal advisor to the Bank on English law matters, and Chryssafinis & Polyviou LLC acted as legal advisors on Cypriot law in connection with the transaction.
(Source: InBusinessNews)
