BoC: Issue of €250 million Tier 2 Notes

The Bank of Cyprus announced on Thursday that it successfully launched and priced an issue of €250 million unsecured and subordinated Tier 2 capital notes, under the Bank’s EMTN Programme. It is expected that settlement will occur on 19 January 2017.

“Credit Suisse and HSBC acted as Global Coordinators and Joint Bookrunners for the issue, and BofA Merrill Lynch and Deutsche Bank acted as Joint Bookrunners,” a BoC press release says.

The notes, the press release adds, “were priced at par with a coupon of 9.25%”. They mature on January 19, 2027 but the bank will “have the option to redeem the Notes early on 19 January 2022, subject to applicable regulatory consents.”

The press release continues to inform that “the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.”

“The issuance of the notes is part of the bank’s strategy to optimise the level and composition of its capital and liabilities, with a positive impact of approximately 130 basis points[1] on the bank’s total capital ratio,” it says.

Chief Executive Officer of Bank of Cyprus Group John Patrick Hourican said that “the bank’s successful return to the debt capital markets demonstrates the confidence of international investors in the bank.”

This, he concluded, “is a further step in the normalisation of the bank’s funding structure, following the recent full repayment of Emergency Liquidity Assistance (ELA) funding, and is another significant milestone in the bank’s journey back to strength.”