€217 million of Bank of Cyprus notes tendered and accepted

The Bank of Cyprus (BoC) this week announced the results of its cash offer to holders of its outstanding €300 million Fixed Rate Reset Tier 2 Capital Notes due October 2031.

According to the announcement, the company invited holders of the existing notes to tender their securities for cash purchase at a price equal to 102.3 per cent of the principal amount.

The company will also pay the accrued interest due on such existing notes up to, but excluding, the settlement date on September 18, 2025.

The bank said that it received valid tenders of approximately €217 million in aggregate principal amount, representing around 72 per cent of the outstanding existing notes.

All of the valid tenders were accepted by the company, leaving around €83 million in aggregate principal amount of the existing notes still outstanding.

As a result, a cost of approximately €5 million is expected to be recorded in the income statement in the third quarter of 2025, foregoing the relevant future coupon obligations.

At the same time, a gain of roughly €1.5 million is expected to be realised from the unwinding of the relevant hedging instrument.

The successful uptake of the offer, alongside the expected issue on September 18, 2025, of €300 million Fixed Rate Reset Tier 2 Capital Notes, demonstrates the group’s proactive management of its capital base, the announcement explained.

The new notes, the announcement added, will refinance the existing notes at a significantly lower coupon rate while maintaining the group’s optimised capital structure.

The new notes are also expected to contribute around 300 basis points to the group’s Total Capital Ratio.

BofA Securities Europe SA and Goldman Sachs Bank Europe SE acted as dealer managers for the offer.