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Bank Of Cyprus Secures €217 Million In Tendered Capital Notes, Reinforcing Its Strategic Refinancing

Announcement Recap

The Bank of Cyprus has confirmed the receipt of valid tenders totaling approximately €217 million for its €300 million Fixed Rate Reset Tier 2 Capital Notes due October 2031. This decisive cash offer was extended to existing note holders at a premium of 102.3% of the principal, with accrued interest payable up to, but excluding, the settlement date of September 18, 2025.

Transaction Highlights

Representing roughly 72% of the outstanding securities, all valid tenders were accepted, leaving approximately €83 million in notes still outstanding. The restructuring is expected to incur a cost of about €5 million in the third quarter of 2025, reflecting the omission of future coupon obligations. Concurrently, the bank anticipates a gain of approximately €1.5 million from the unwinding of the associated hedging instruments.

Strategic Capital Optimization

This successful tender underscores the group’s proactive capital management strategy. Looking ahead, the Bank of Cyprus plans to issue new Fixed Rate Reset Tier 2 Capital Notes on September 18, 2025. The new issue, set at a significantly lower coupon rate, will not only refinance the remaining outstanding notes but is also projected to add around 300 basis points to the Total Capital Ratio. Such strategic moves reiterate the bank’s commitment to maintaining an optimized capital structure.

Market Impact and Execution

Industry heavyweights BofA Securities Europe SA and Goldman Sachs Bank Europe SE served as dealer managers for this offer, further affirming the transaction’s market expertise and execution strength. The initiative highlights a broader trend in the financial sector, where institutions are leveraging refinancing and capital restructuring to enhance financial resilience in a competitive market environment.

EU Moderates Emissions While Sustaining Economic Momentum

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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