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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.

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.

EU Moderates Emissions While Sustaining Economic Momentum

by THEFUTURE.TEAM
November 15, 2025

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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