Cyprus cooperative bank launches with 42 million share public offering

The sale of shares to establish the Pancyprian Cooperative Bank will take place between July 22 and November 17, 2026, as the initiative enters its capital raising phase following approval of the public offering prospectus by the Cyprus Securities and Exchange Commission (CySEC).

The announcement was made on Friday by Panikos Hambas, president of the committee of the Pancyprian Cooperative Society for Participation and Promotion of Cooperativism Ltd, during the company’s first official gathering in Nicosia following the prospectus approval.

The public offering covers up to 42 million new shares, each with a nominal value of €1.00, with interested investors able to purchase shares through the Athlos Capital platform.

The minimum purchase requirement has been set at 100 shares.

The event attracted significant participation, with members of parliament, political party representatives, government officials, local authority representatives, trade union representatives, cooperative sector figures and business executives attending.

The initiative aims to establish the Pancyprian Cooperative Bank, with the newly created participation company serving as the vehicle through which citizens and organisations can acquire shares.

Hambas said the project had been challenging but achievable, arguing that social and economic conditions were now suitable for a new cooperative model.

“The entire undertaking was and remains difficult, but not impossible,” Hambas said.

“We must find the right chemistry so that the Cooperative Idea, ‘each person for all and all for each person’, can operate within the new legal framework of the banking sector, with people at the centre,” he added.

Hambas said transparency, democratic procedures, consensus and unity were the defining characteristics of the cooperative company.

“Our organisation will stand out because it is being created by citizens for citizens, and by the legal entities operating on the island,” he said.

He added that the new institution would follow prudent lending practices to ensure loans remain sustainable and do not become non-performing.

Criticising aspects of the current banking environment in Cyprus, Hambas said the new institution would take a different approach.

“Our organisation will not follow behaviours and practices like those seen today in Cyprus, where, while the European Central Bank is reducing interest rates, on our island they are increasing,” he said.

Hambas also referred to the historical division of the cooperative credit sector following the establishment of the Republic of Cyprus.

He said that in 1960 the Constitution separated the cooperative credit sector into Greek Cypriot and Turkish Cypriot structures, while the commercial sector remained unified.

“Today, in 2026, Turkish Cypriots maintain the Limassol Cooperative Savings Society Ltd in the occupied areas, which is registered with the Central Bank of Cyprus,” Hambas said.

“Unfortunately, since 2018 we have not had a Cooperative Bank,” he added.

He said the Turkish Cypriot cooperative sector participates in the European Association of Co-operative Banks, based in Brussels, while the Greek Cypriot cooperative sector is absent.

“We have a duty to once again place the flag of Cyprus’ cooperative credit sector in the European Association of Co-operative Banks,” Hambas said.

Explaining the structure of the proposed bank, Hambas said several cooperative banks had been studied before deciding on the model to follow.

“We created the Pancyprian Cooperative Society for Participation and Promotion of Cooperativism Ltd, where the basic cooperative principle of ‘one member, one vote’ applies,” he said.

“This company received approval from CySEC to purchase shares from the public, and this company will hold 60 per cent of the Pancyprian Cooperative Bank,” he added.

The remaining 40 per cent will belong to legal entities and cooperative sector companies, according to Hambas.

He said a new company named the Pancyprian Cooperative Society would be registered in the coming period and, once the necessary licences were secured, it would be transformed into the Pancyprian Cooperative Bank.

Responding to questions from the audience about the timetable for establishing the bank, Hambas said preparations were under way for applications to the Central Bank of Cyprus (CBC) and the European Central Bank (ECB).

“We are currently working on the application to the Central Bank of Cyprus,” Hambas said.

He explained that the application to the CBC would be submitted at the same time as the application to the ECB.

Hambas said the approval timetable for the licences was not controlled by the organisers, but preparations were already beginning so the new company could move quickly once approval was granted.

Asked whether the new bank would operate physical branches, Hambas said the former cooperative sector’s property had already passed to the state.

Without directly answering whether branches would be established, he said the new bank would place strong emphasis on technology.

“It will be very high in terms of technology and people will be served,” Hambas said.

The share offering follows approval by CySEC of the prospectus for the public issue, while the capital raising process was authorised through a company general meeting resolution on December 1, 2025.

Under the offering structure, the board of directors retains the right to increase the size of the issue if demand exceeds the initial allocation.

In the event of oversubscription, the issue could expand from 42 million shares to up to 100 million shares, representing the company’s authorised share capital.

The allocation framework provides that 60 per cent of the shares will be reserved for individual investors, while 40 per cent will be allocated to Cypriot companies.

The committee overseeing the initiative consists of 19 members, chaired by Hambas.

The committee members are Katerina Markoullidou, Panikos Argyrides, Kyriacos Charalambous, Yiannakis Ioannou, Christos Tombazos, Michalis Lytras, Antonis Antoni, Andreas Kitromilides, Constantinos Constantinou, Charalambos Charalambous, Demetris Koulas, Pambos Ioannides, Neophytos Xenophontos, Apostolos Skouroupatis, Akritas Aspris, Vassos Partassides, Evgenios Eleftheriou and Anastasis Yiapanis.

At the event, Cyprus Protopapas, commissioner of the Cooperative Societies and Social Enterprises Service, expressed support for the initiative.

He said the service had supported the creation of a new cooperative bank from the beginning, based on a more modern and healthier foundation, within the limits of its responsibilities.

Protopapas said the initiative is governed by cooperative company legislation, as well as laws covering public offerings and prospectuses under CySEC.

He added that the proposed bank would also be assessed under legislation governing credit institutions and related EU rules, which form the basis on which the CBC and ECB will examine the application for a banking licence.

A presentation of the share purchase platform was later given by a representative of Athlos Capital.

The board of directors of the Pancyprian Cooperative Society for Participation and Promotion of Cooperativism Ltd also honoured the descendants of the founders of the cooperative movement in Cyprus with a commemorative plaque.

Hambas said that Ioannis Economides, Marcos Charalambous and Michalis Papapetrou from Lefkoniko had, in 1909, planted and developed the idea of cooperativism in Cyprus.

He added that later Nearchos Clerides elevated the role of cooperativism in education through savings schemes.

“It was the first organised and successful effort to free working people from usury, in the heart of Mesaoria,” Hambas said.

“Their work inspires us, particularly today, and gives us courage,” he added.