Nicosia, Cyprus. The Bank of Cyprus (BoC) announced an agreement to acquire performing loans, deposits and selected assets and liabilities from the Cyprus Development Bank (CDB). The transaction is aligned with BoC’s growth plans, the bank said.
Transaction scope and financial details
The agreement between Bank of Cyprus Holdings Public Limited Company and CDB involves the acquisition of a portfolio of performing loans with a gross book value of approximately €150 million. It also includes deposits totalling around €500 million, which BoC said would strengthen its funding base.
The bank said the deal is expected to be completed at a price close to par, reflecting a low-risk profile and a limited impact on capital estimated at around 35 basis points. BoC added that the acquisition is anticipated to deliver a modest positive impact on the group’s income statement following synergies, while maintaining financial stability.
Approvals and expected timeline
The transaction remains subject to approval by CDB shareholders, finalisation of transaction documentation and regulatory approvals, along with other standard conditions. Completion is expected in the second half of 2026, subject to these requirements being fulfilled, BoC reported.
BoC said it has secured irrevocable commitments from shareholders representing approximately 96 per cent of CDB’s issued share capital to support the transaction at an extraordinary general meeting.
Strategic rationale
BoC said the move supports its strategy to expand its performing loan portfolio and deposit base in the medium term and reinforces its core operations. The bank said the acquisition is consistent with its approach of targeted and cautious growth, as previously highlighted by chief executive officer Panicos Nicolaou in public statements.
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