Cyprus is set to return to the public debt markets a year earlier than expected, by issuing a new five-year bond maturing in June 2019.
Around 11 am on Wednesday, the five international financial giants that cooperate with the Republic of Cyprus announced that they are accepting offers on Cypriot bonds with an interest rate of 4.9%. The process will be completed this afternoon.
Reuters agency reports that the pre-sale demand for the new five-year bond topped €1.5.
The bond issue comes as a confirmation of the positive reception of Cyprus in recent days, at the road shows organized by the five foreign banks, Deutsche Bank, Goldman Sachs, HSBC, UBS and VTB Capital, advisors on the issue. According to sources, the buyers are expected to be largely British- and U.S.-based hedge funds.
It should be noted that tThe Cypriot government prepared the ground for this move by selling €100 million of bonds directly to one overseas investor in a so-called private placement in April.
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