Cyprus to tap international markets with ten-year bond - Paphos Investments

Cyprus to tap international markets with ten-year bond

Cyprus to tap international markets with ten-year bond

Cyprus is expected to tap the international markets on Thursday with the issuance of a €1 billion ten-year European Medium-Term Note (EMTN).

The Ministry of Finance’s Public Debt Management Office in a press release said “the Republic of Cyprus, rated BBB- (positive) by Standard and Poor`s, Ba1 (stable) by Moody`s, BBB- (stable) by Fitch and BBBL (positive) by DBRS, has mandated Barclays, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and HSBC to lead manage a single-tranche EUR-denominated RegS CACs benchmark 10yr issuance in registered form under the Issuer`s EMTN Programme. Listing London Stock Exchange (Regulated Market). Denominations EUR 1k+1k. English Law.”

The transaction is expected to be launched in the near future subject to market conditions. FCA/ICMA stabilisation applies, the PDMO added.

The issuance aims at strengthening cash buffers to cover Cyprus financing needs both as regards maturing debt and fiscal needs, as Cyprus is expected to record budget deficits in 2022 due to the continuation of the Covid crisis.

The PDMO strategy aims at least one market exit annually while it aims to maintain cash buffers covering debt maturities of the next nine months on a rolling basis.

According to the latest data, Cyprus public debt is estimated to be at €24.3 billion while debt maturities for 2022 are estimated at €1.92 billion.

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