Cyprus Mail
Banking and Finance Business Cyprus

Interest in bonds shows confidence of international markets in Cyprus

Finance Minister Constantinos Petrides

Cyprus on Tuesday raised €1bn after it re-opened bonds due in 2024 and 2040 in a bid to absorb cheaper cash to repay more costly debt.

Each bond was due to raise a minimum of €250m but offers eventually exceeded €5bn for both.

Petrides expressed satisfaction, adding that demand for the 2024 bond exceeded €2bn while the 2040 one received over €3bn.

The interest rates were about 0.34 per cent and 1.47 per cent respectively.

The strong demand demonstrates the confidence of international markets in Cyprus, the minister said.

“Increase of available cash affords more options as regards the possible repayment of more expensive or more short-term debt in the near future, reducing cost and public debt risks,” Petrides said. “It is stressed that the public debt would only rise temporarily given that the capital will be used shortly exclusively for the repayment of existing debt.”

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