Lender moves to redeem remaining €82m in capital notes early

The Bank of Cyprus on Thursday announced its decision to proceed with the early redemption of its Tier 2 Capital Notes, marking the final stage in the management of the instrument originally issued in 2021.

The company had issued €300 million in Fixed Rate Reset Tier 2 Capital Notes on April 23, 2021, under the identifier ISIN XS2333239692, with an original maturity date set for October 23, 2031.

The notes included an issuer call option exercisable between April 23, 2026 and October 23, 2026, subject to the necessary regulatory approvals.

In September 2025, the company launched a tender offer to noteholders, inviting them to sell their holdings back to the bank at a price of 102.3 per cent of the principal amount.

The offer resulted in valid tenders of approximately €217 million in principal amount, all of which were accepted, leading to the purchase and cancellation of the majority of the notes.

Following this transaction, around €83 million in principal remained outstanding, significantly reducing the size of the original issuance.

In December 2025, the company carried out additional open market purchases totalling €0.3 million, further lowering the outstanding balance.

As of March 26, 2026, the remaining outstanding amount of the notes stood at approximately €82 million in principal.

The company has now decided to exercise its option to proceed with the full early redemption of the remaining notes on April 23, 2026.

Formal notice of the redemption will be provided to noteholders in accordance with the applicable terms and conditions governing the instrument.

Specifically, the notification will follow the provisions set out under Condition 5(d) of the Tier 2 Notes, ensuring compliance with contractual obligations.

The move follows prior approval granted by the European Central Bank (ECB) as the competent authority, which authorised the early redemption on July 25, 2025.