Bank Of Cyprus Raises €300 Million In Oversubscribed Bond Issuance

Strong Market Reception

Bank of Cyprus completed a €300 million senior preferred notes issuance under its EMTN Programme, attracting more than €1.7 billion in investor demand and highlighting continued confidence in the bank’s financial position and funding strategy.

Issuance Details And Pricing

According to information published on the Cyprus Stock Exchange, the notes were priced at 99.822% and carry a fixed annual coupon of 3.875%, payable until the optional redemption date of May 20, 2030. Strong institutional participation supported a final yield of 3.924%, reflecting favourable market conditions for European banking debt issuances.

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Maturity And Redemption Provisions

Final maturity for the notes is scheduled for May 20, 2031, although the bank retains the option to redeem the securities one year earlier, subject to regulatory approvals and predefined conditions. Should the notes remain outstanding after May 2030, the coupon will switch to a floating rate linked to three-month Euribor plus 100 basis points, payable quarterly until maturity.

Settlement And Trading Information

Settlement is expected on May 20, 2026, with the securities set to begin trading on the Luxembourg Stock Exchange Euro MTF market. More than 120 institutional investors participated in the transaction, while the order book reached roughly six times the size of the offering, reinforcing strong investor appetite for the issuance.

Strategic Financial Impact

Proceeds from the transaction will contribute toward meeting minimum own funds and eligible liabilities requirements while strengthening the bank’s regulatory capital position. According to the Bank of Cyprus, the issuance is expected to improve its MREL ratio by approximately 284 basis points relative to risk-weighted assets, maintaining a comfortable buffer above regulatory thresholds.

Collaborative Execution

Joint lead managers included BNP Paribas, BofA Securities Europe SA, Deutsche Bank and Goldman Sachs. Legal advice for the transaction was provided by Sidley Austin LLP, together with local counsel Chryssafinis and Polyviou LLC.

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Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

by THEFUTURE.TEAM

May 22, 2026

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

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Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.

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