Breaking news

Bank Of Cyprus Successfully Launches Oversubscribed €300 Million Tier 2 Capital Notes Issue

by THEFUTURE.TEAM

September 11, 2025

Transaction Overview

The Bank of Cyprus (BoC) announced on Thursday the successful launch and pricing of a €300 million unsecured, subordinated Tier 2 Capital Notes issue under its €4 billion Euro Medium Term Note Programme, scheduled for September 10, 2025. The transaction garnered strong investor interest, reflecting deep market confidence in the bank’s financial prospects.

Investor Demand And Market Reception

Demand surpassed expectations with over 100 institutional investors participating, driving the final order book to exceed €3 billion—more than ten times the issued amount. This overwhelming response underscores robust investor confidence from both local and international markets.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Pricing And Yield Improvements

The strong demand allowed BoC to secure a final pricing spread of 195 basis points, notably tighter by 35 basis points than the initial indication. The effective yield of 4.321 percent compares favorably against the initial rate of 4.67 percent, outperforming the bond currently being refinanced and even recent Senior Preferred bond issuances. Analysts note that these improvements position the bank’s offering competitively against Greek bonds.

Bond Specifications And Redemption Terms

The new notes, priced at 99.632 percent with a fixed annual coupon of 4.25 percent, will reset on September 18, 2031, and mature on September 18, 2036. BoC has retained the option to early redeem the notes anytime within a six-month period commencing March 18, 2031, subject to regulatory consents. Settlement is slated for September 18, 2025.

Market Ratings And Capital Impact

Moody’s Investors Service Cyprus Limited rated the new notes Ba1, further solidifying market confidence. These notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market. Proceeds are set to be on-lent to BoC Public Company Limited for general funding purposes, qualifying as Tier 2 capital. The issuance is expected to bolster the group’s Total Capital Ratio by approximately 300 basis points while maintaining an optimised capital structure.

Additional Strategic Moves

In related developments, BoC has invited holders of its outstanding €300 million Fixed Rate Reset Tier 2 Capital Notes—callable between April 23, 2026, and October 23, 2026—to tender their notes at a purchase price of 102.3 percent of the principal amount. Additionally, the bank intends to repurchase its existing subordinated bond maturing in 2031 at the same pricing, further streamlining its debt profile. The transaction was coordinated by stalwarts such as BofA Securities Europe SA and Goldman Sachs Bank Europe SE, with additional participation by Barclays Bank Ireland PLC, Citigroup Global Markets Limited, Morgan Stanley Europe SE, and Cisco acting as Co-Manager.

The Future Forbes Realty Global Properties

Cyprus Youth Confront Economic Challenges Amid High Rent And Job Insecurity

by THEFUTURE.TEAM

April 16, 2026

Young adults in Cyprus are facing a convergence of economic pressures: rising rents, escalating living costs, and an uncertain employment landscape after graduation. Recent interviews with five university students reveal how these issues are reshaping the prospects of an entire generation.

Housing Crisis And Its Far-Reaching Impact

Rising rental costs remain the most immediate concern. Monthly rent for a one-bedroom apartment is approaching €1200, placing independent living out of reach for many students. As a result, many continue living with their families or take on part-time work during their studies. This limits financial independence and delays longer-term decisions such as forming households or starting families.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Balancing Academic Ambitions And Financial Necessities

Mikaella Stylianou, a first-year Business Administration student at a private university in Cyprus, works to cover everyday expenses, including transport, clothing, and basic living costs. Balancing employment with academic responsibilities reduces available time for rest and social life. Even student accommodation, with studio rents around €600 per month, remains a significant financial burden relative to entry-level income expectations.

Labor Market Challenges And Systemic Shortcomings

Transitioning from education to employment remains uncertain. Andria Perikleous, a Graphic Arts student, and Christos Parmakis, a law student and youth representative at the Cyprus Congress in the Council of Europe, point to structural barriers in the job market. Employers often require prior experience, which recent graduates lack, while rigid academic schedules make part-time work difficult to secure. This combination contributes to financial instability and weakens confidence in post-graduation prospects.

The Broader Economic And Social Landscape

Concerns extend beyond individual finances. Konstantinos Tsokos and Kyprianos Christou highlight the gap between rising living costs and relatively low wages, alongside limitations in public transport and low levels of political engagement among young people. These conditions are prompting some to consider opportunities abroad, raising broader questions about long-term demographic and economic trends in Cyprus.

A Call For Comprehensive Reform

The experiences shared by students point to structural challenges rather than isolated cases. Affordable housing, stronger financial support systems, and a more flexible labor market are frequently cited as necessary areas for reform. Addressing these issues will be central to improving the transition from education to employment and supporting long-term economic stability.