Cyprus has issued a notification to the markets that it will issue a seven-year Eurobond worth one billion euros, the Ministry of Finance said in a statement.
It added that investment banks Citi, Deutsche Bank, Goldman Sachs Europe and HSBC were appointed as advisors for the issuance of the bond, under Cyprus’ Euro Medium-Term Note (EMTN) program.
The Ministry of Finance also announced that it intends to redeem up to 500 million euros (537 million U.S. dollars) of an existing 1.5 billion Eurobond with a 2.375 percent interest rate, maturing in September 2028.
It said that the redemption value of the bond has been set at 98.4 percent of the bond’s cost. Cyprus’ intention to issue the Eurobond was announced only days after international rating agency Standard and Poor’s followed Fitch and Moody’s in upgrading the eastern Mediterranean island’s credit standing by one grade from BBB to BBB+. (1 euro = 1.07 U.S. dollar) ■
