Bank of Cyprus CEO Panicos Nicolaou has addressed whether the bank would provide financing or participate in the Cyprus–Greece electricity interconnection project, known as the Great Sea Interconnector (GSI), and whether it has already been approached by French investment company Meridiam.
Speaking at a press conference following the announcement of the bank’s nine-month financial results, Nicolaou was asked to comment on reports that Meridiam had approached Bank of Cyprus about participating in the electricity interconnection project.
He explained that once the project’s stakeholders, potentially including France’s Meridiam and Greece’s Independent Power Transmission Operator (ADMIE), make a final decision to proceed with its implementation, it would be perfectly normal for them to approach local banks to participate in a large syndicated loan.
However, he stressed that there was currently nothing further to report, as the bank had not yet been presented with the project’s financial details.
“We have not yet seen the financial data of the project, so we are not in a position to assess anything or make any decision,” he said.
More broadly, the Bank of Cyprus CEO emphasised that the bank is obliged to evaluate any infrastructure project in the country.
However, he made clear that participation would depend on the project providing sufficient information and meeting the bank’s fundamental lending criteria.
“First and foremost, the project must be completed and generate cash flows that will enable the loan to be repaid,” Nicolaou concluded.
