Cyprus’ sustainable bond attracts highest investor interest on record

With an offering book of over €12 billion, Cyprus’ sustainable bond issue this week has received the highest investor interest in the island’s issuance records, according to Finance Minister Makis Keravnos.

In a written statement, the minister said the successful issuance of Cyprus 10-year sustainable bond was proof of investors’ confidence in the local economy and new Government’s economic policy.

Expressing his satisfaction, the minister added that the extremely high interest shown by domestic and international investors was reflected in the final size of the offering book, which, at over €12 billion, was the largest in the history of the Republic of Cyprus' issuance records.

"Achieving this performance in today's volatile and uncertainty-filled international environment increases its importance and demonstrates the confidence of investors in the Cypriot economy and the expressed economic policy of the new Government," he said.

He added that the coupon of 4.125% (reoffer yield of 4.219%) is in line with the pricing of the Republic's existing bonds in the international financial markets, while the high interest has allowed the compression of costs to levels close to those of the secondary market, which, he said, is again a first in the Republic's international issuances.

He also noted the significance of issuing a Sustainable Bond, as it not only indicates the Republic's continued commitment to supporting issues related to society and the environment, but has ensured Cyprus' entry into a new and dynamic part of the bond market that is expected to grow significantly in the coming years.

Concluding, Keravnos said the “successful issuance has once again demonstrated the confidence of the international investment community in the Republic of Cyprus. Prudent fiscal policy and ensuring macroeconomic stability is paying off, especially in a difficult and uncertain environment".

"For this reason, it is particularly important to continue these policies in order to ensure the uninterrupted financing of the state on the best possible terms while mitigating risks," Keravnos concluded.