Bank Of Cyprus Redeems €82 Million In Tier 2 Notes

by THEFUTURE.TEAM

March 27, 2026

Bank Of Cyprus Takes Decisive Action

The Bank Of Cyprus has embarked on a significant capital management initiative by initiating the early redemption of its Tier 2 Capital Notes. This development represents the final phase of managing the instrument originally issued in 2021, underscoring the bank’s commitment to optimizing its capital structure.

Details Of The Issuance And Tender Offer

In April 2021, the bank issued €300 million in Fixed Rate Reset Tier 2 Capital Notes (ISIN: XS2333239692) with a maturity date initially set for October 2031. The notes included an issuer call option, exercisable between April and October 2026, pending required regulatory approvals. A tender offer launched in September 2025 invited noteholders to sell their holdings back to the bank at 102.3% of the principal, leading to accepted tenders amounting to approximately €217 million in principal. This aggressive move drastically reduced the size of the original issuance.

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Final Steps Towards Redemption

Following additional open market acquisitions totaling €0.3 million in December 2025, the outstanding balance was trimmed to roughly €82 million as of March 2026. The bank now plans to exercise its option, redeeming the remaining amount on April 23, 2026. This step complies with Condition 5(d) of the Tier 2 Notes and follows prior approval from the European Central Bank (ECB) granted on July 25, 2025.

Implications For Financial Strategy

This early redemption reflects a broader strategic goal of reducing leverage and reinforcing financial stability amid evolving market conditions. By actively managing its capital instruments, Bank Of Cyprus positions itself to concentrate on strengthening core operations and meeting stringent regulatory demands, thereby enhancing long-term shareholder value.

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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

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