Cyprus has always been defined by the sea – its rhythms, its opportunities and its enduring influence on the island’s identity

Nestled at the crossroads of three continents, Cyprus occupies a strategic position in the eastern Mediterranean that has shaped its history for millennia. From ancient mariners navigating trade routes to modern fleets powering global commerce, the island has consistently served as a vital link between Europe, the Middle East and Asia. This geographic advantage, coupled with a resilient maritime culture, has transformed Cyprus into a thriving maritime hub that bridges tradition and innovation.

Over the centuries, Cyprus has cultivated a deep-rooted seafaring heritage, one that continues to inform its modern shipping industry. Today, the country stands as a beacon of maritime excellence, with a shipping sector that plays a pivotal role in its economic landscape. The statistics speak volumes: Cyprus is home to the third largest fleet in the European Union, the eleventh largest merchant fleet globally, and the largest ship-management centre in Europe. These achievements are not merely symbolic – they reflect a sophisticated infrastructure, a robust regulatory framework, and a highly skilled workforce that together support a vibrant and competitive maritime ecosystem.

The maritime cluster in Cyprus is both diverse and dynamic. More than 200 companies operate within this sector, offering a comprehensive range of services that span the entire shipping chain. From ship ownership and technical management to brokerage, insurance, marine technology, crew training and bunkering, the cluster is a testament to the island’s ability to attract and retain world-class maritime talent and investment. It is a sector that thrives on collaboration, innovation, and a shared commitment to excellence.

For the Bank of Cyprus, shipping is far more than just another industry – it is a cornerstone of national prosperity and a strategic pillar of the Bank’s long-term vision. Recognising the sector’s critical importance, the Bank has made a deliberate and sustained commitment to support its growth and evolution. This commitment is reflected in the allocation of dedicated resources, the cultivation of specialised expertise, and the deployment of targeted capital solutions designed to meet the unique needs of maritime clients.

Nicholas Pavlidis, Head of Shipping

The Bank’s approach to shipping finance is both proactive and partnership-driven. It seeks not only to provide financial services but also to act as a catalyst for sustainable development within the sector. By aligning its offerings with the long-term goals of the maritime community – such as decarbonisation, digitalisation and resilience – the Bank of Cyprus positions itself as a trusted ally in navigating the challenges and opportunities of the global shipping landscape.

In doing so, the Bank reinforces its role as a key enabler of Cyprus’s maritime future. It understands that the strength of the shipping industry is inseparable from the strength of the nation itself. Through strategic investment, thought leadership, and unwavering support, Bank of Cyprus is helping to ensure that the island remains not only a gateway between continents but also a lighthouse for maritime innovation and sustainability.

Limassol port

A dedicated shipping centre

Bank of Cyprus’ commitment to shipping became institutionalised in 2017 with the launch of the Bank’s Shipping Centre. This initiative brought together experienced professionals from Cyprus and abroad, laying the foundations for what is now a well-established unit within the organisation. The vision was clear: to create a specialised hub that understands the intricacies of shipping finance, operates with flexibility and builds relationships founded in trust.

Since its establishment, the Shipping Centre has steadily expanded its reach and reputation. It provides tailor-made financing for ocean-going cargo vessels and complements these facilities with a wide range of related services competitively offered by the Bank, from foreign exchange and interest rate risk management to operational banking and private banking. Importantly, it has fostered close links with leading shipping groups, mostly in Greece and Cyprus, establishing itself as a reliable partner in a sector that demands both technical expertise and financial resilience.

As Nicholas Pavlidis, Head of Shipping, explains, “We are confident about the continuous expansion of the Shipping Centre. Despite the challenges and fluctuations inherent in shipping, our dedication to clients remains unwavering. Shipping will continue to be a driver of economic growth, and our Shipping Centre will be here to support that journey.”

Growth through international lending

While Cyprus remains a stronghold, the future growth of Bank of Cyprus in shipping lies increasingly in international expansion. Going forward, the Bank aims to strengthen its financial performance  assisted by the expansion of client relationships and the growth of its performing loan book. Central to this strategy is the increase of the international loan portfolio, which includes international banking, shipping and syndicated loans.

The Bank has set itself an ambitious but realistic target: to expand this international portfolio by around 50 per cent in the medium term, growing it to €1.5 billion from approximately €1.0 billion at the end of 2024. This expansion will build on the customer base of the Bank’s International Business Units overseas, while carefully targeting selective industries in line with the Bank’s defined risk profile. At the same time, the domestic loan portfolio is expected to grow, supported by Cyprus’ economic performance and a gradual slowdown in loan repayments in a normalised interest rate environment.

This dual focus reflects the Bank’s understanding of balance: a strong domestic foundation combined with a diversified international footprint, ensuring resilience and growth even in volatile conditions. Within this strategy, shipping finance stands out as a sector of particular opportunity and strength, building on the Bank’s expertise and its ability to offer risk diversification.

Navigating the industry transformation

Shipping finance in 2025 has significantly evolved from a decade ago. Global trends are reshaping the industry, creating new risks but also new opportunities. Shipowners seeking to modernise fleets with the use of fuel-efficient technology, renewable-energy-support vessels, or environmentally friendly retrofits, are increasingly turning to banks that link loan terms to sustainability metrics. This shift towards decarbonisation reflects not only regulatory pressure but also the demands of charterers, investors and the society at large.

Technology, too, is disrupting the sector. Digital platforms and blockchain are streamlining transactions, enabling direct connections between shipowners and investors, operators and service providers, and automating compliance through smart contracts. These innovations promise lower costs, greater transparency, and reduced fraud risks. European shipping finance, in particular, has embraced fintech solutions to increase efficiency and manage risk.

Bank of Cyprus closely follows these trends, ensuring that its Shipping Centre is equipped to help clients navigate the shifting landscape. As Pavlidis notes, “The shipping industry is undergoing profound transformation. From sustainability and digitalisation to new financing models, our Shipping Centre’s role is to remain ahead of the curve, providing solutions that allow our clients to adapt and succeed.”

An ESG-oriented strategy

Central to the Bank’s vision is an unwavering dedication to sustainability and responsible governance. By embedding Environmental, Social, and Governance (ESG) principles into its operational and investment frameworks, the Bank of Cyprus is aligning its financial services with the long-term health of the planet and the communities it serves. This commitment is not just a regulatory checkbox – it is a core philosophy that informs decision-making at every level, from risk assessment to client engagement

The Bank’s shipping portfolio reflects its wider commitment to ESG principles. With a focus on younger fleets, the average vessel age in the portfolio is less than ten years, with an underscoring preference for modern, fuel-efficient ships that align with evolving regulations. The Shipping Centre works closely with clients to monitor compliance with environmental rules and to support their sustainability targets. While alternative propulsion fuels are still under discussion, the Bank believes that the industry is ready to embrace change and positions itself as a forward-looking partner in the global effort to decarbonise shipping.

Looking ahead

As the Bank of Cyprus charts its course toward the future, its ambitions in the realm of shipping finance reflect a careful balance of prudence and vision. The Bank is not merely responding to market trends – it is actively contributing to shaping them. With a strategy that marries international expansion with a robust and resilient domestic foundation, the Bank is positioning itself as a dynamic member of the global maritimecommunity. This dual focus allows it to remain agile and responsive to the evolving needs of the shipping industry, while also reinforcing its commitment to Cyprus as a strategic hub for maritime finance.

In an industry often battered by geopolitical shifts, economic cycles, and regulatory changes, the Bank’s consistency and reliability have become defining traits. It has cultivated a reputation for being a steady hand in turbulent times, offering clients not only capital but also strategic insight and long-term partnership. This confident approach has enabled the Bank to build enduring relationships with key stakeholders across the shipping ecosystem.

“Over the past eight years, our Shipping Centre has grown into a point of reference for the region,” says Nicholas Pavlidis, Head of Shipping Finance. “It’s not just about providing loans or managing portfolios – it’s about understanding the particular needs of our clients, and in a volatile maritime world being present through every challenge and adding value at every opportunity. We will continue to leverage our strengths, deepen our relationships, and play our role in ensuring that Cyprus and the Bank of Cyprus remain at the heart of global shipping finance.”

Looking ahead, the Bank of Cyprus is committed to expanding its footprint in shipping while remaining true to its values. It envisions a future where shipping finance is not only profitable but also purposeful – where innovation, sustainability and collaboration drive growth. In doing so, the Bank aims to be more than a financier; it seeks to be a trusted ally in navigating the challenges of global trade and leading the maritime transformation.