Nicosia, Cyprus. The Bank of Cyprus announced on Thursday that it successfully launched and priced a €300 million senior preferred notes issuance under its EMTN Programme. The transaction drew demand from more than 120 institutional investors.
Transaction structure and pricing
According to a filing on the Cyprus Stock Exchange, the transaction was carried out by Bank of Cyprus Holdings Public Limited Company together with its subsidiary Bank of Cyprus Public Company Limited and the wider group.
The notes were priced at 99.822 per cent with a fixed coupon of 3.875 per cent per annum, payable annually in arrear until the optional redemption date of May 20, 2030. The issuance achieved a yield of 3.924 per cent.
Maturity, redemption option and reset
The maturity date is May 20, 2031, with an option for the bank to redeem the notes on May 20, 2030, subject to regulatory approvals and conditions set out in the terms.
If the notes are not redeemed on the optional redemption date, the coupon converts to a floating rate of three-month Euribor plus 100 basis points, payable quarterly in arrear until maturity.
Settlement and listing
Settlement is expected to take place on May 20, 2026, and the securities are to be admitted for trading on the Luxembourg Stock Exchange Euro MTF market.
Investor demand
The bank said the issuance attracted strong investor demand, with the final orderbook reaching about six times oversubscription at more than €1.7 billion and peaking at €1.9 billion. Final pricing was tightened by 30 to 35 basis points compared with initial guidance.
The bank said the outcome reflects market recognition of the group’s financial profile, citing participation levels and pricing.
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