The Bank of Cyprus is issuing a new high-priority bond worth €300 million, capitalising on the positive momentum following the issuance of Additional Tier 1 capital in mid-June, according to a report by the Cyprus News Agency released on Tuesday.

According to the report, the bond issuance will meet the criteria for the Minimum Requirement for own funds and Eligible Liabilities (MREL).

The agency, citing its own sources, reported that the bidding book opened with an interest rate of approximately 7.75 per cent (Euribor plus a margin of about 4.40 per cent).

The target set for the bank by the Single Resolution Board (SRB) is 24.35 per cent of weighted assets, equivalent to €2.47 billion.

Based on the bank’s latest results, the formation of MREL stands at 20.82 per cent or approximately €2.12 billion, with a shortfall of around €350 million that needs to be achieved by the end of December 2025.

However, with the increase in the countercyclical buffer by the Central Bank to 1 per cent from June 2024, there is an additional obligation of €100 million.

Therefore, with the new issuance, the bank is very close to achieving its target and may require another issuance possibly next year to ensure full compliance.

Moreover, the agency explained that the Bank of America, Barclays, Citi, and Goldman Sachs Bank Europe SE, along with CISCO, have jointly undertaken the role of advisors for the issuance, conducting a series of presentations to investors.

The successful completion of the bond issuance is expected to further strengthen the Bank of Cyprus’ capital position and support its ongoing efforts to meet regulatory requirements.

The Consumer Price Index (CPI) for construction materials in Cyprus recorded a year-on-year increase of 5.78 per cent during the first half of 2023, compared to the same period in 2022, according to a report released on Tuesday by the state’s statistical service.

According to the report, the index stood at 135.28 units in June, with 2015 being designated as the base year, which has a value of 100 units.

During this period, the highest increase was observed in mineral products, with a significant rise of 23.13 per cent, followed by mineral fuels at 12.93 per cent, wood, insulation materials, chemicals, and plastics at 5.96 per cent, and electromechanical goods at 5.01 per cent.

On the other hand, a decrease of 3.67 per cent was recorded in metal products.

Compared to June 2022, the CPI experienced a moderate increase of 0.67 per cent in June 2023.

Looking at the main product categories, there was an annual increase in mineral products by 15.85 per cent, mineral fuels by 8.2 per cent, wood, insulation materials, chemicals, and plastics by 2.61 per cent, and electromechanical goods by 1.1 per cent.

However, it should be noted that there was a decrease of 9.86 per cent in metal products.

Finally, the Construction Materials Prices Index experienced a slight decrease of 0.17 per cent compared to May 2023.

The Cyprus Stock Exchange (CSE) ended Tuesday, July 18 with losses.

The general Cyprus Stock Market Index was at 115.95 points at 13:05 during the day, reflecting a decrease of 0.09 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 70.11 points, representing a drop of 0.09 per cent.

The total value of transactions came up to €76,952.

In terms of the sub-indexes, the main index fell by 0.11 per cent, while the remaining indexes remained unchanged.

The biggest investment interest was attracted by the Cyprus Cement Company (no change), Petrolina (no change), Salamis Tours (no change), the Bank of Cyprus (-0.35 per cent), Demetra Holdings (no change), and Hellenic Bank (-1.04 per cent).