Nicosia, Cyprus. Bank of Cyprus announced on Thursday that it will proceed with the early redemption of its Tier 2 Capital Notes, completing the final stage of managing the instrument issued in 2021.
Notes issued in 2021 and call option
Bank of Cyprus issued €300 million in Fixed Rate Reset Tier 2 Capital Notes on April 23, 2021, under ISIN XS2333239692, with an original maturity date of October 23, 2031. The notes included an issuer call option exercisable between April 23, 2026 and October 23, 2026, subject to necessary regulatory approvals.
Tender offer and subsequent purchases
In September 2025, the bank launched a tender offer to noteholders to sell their holdings back at 102.3 per cent of the principal amount. The offer resulted in valid tenders of approximately €217 million in principal amount, all of which were accepted, leading to the purchase and cancellation of the majority of the notes.
Following the tender offer, around €83 million in principal remained outstanding. In December 2025, the bank made additional open market purchases totalling €0.3 million.
Remaining balance and redemption date
As of March 26, 2026, the remaining outstanding amount stood at approximately €82 million in principal. The bank said it has decided to proceed with the full early redemption of the remaining notes on April 23, 2026.
Formal notice of the redemption will be provided to noteholders in accordance with the applicable terms and conditions.
How do you expect the early redemption to affect holders of the remaining Tier 2 Capital Notes?