Nicosia: The issuance of a new £1 billion 10-year bond by the Republic of Cyprus was completed successfully on Wednesday, as investor interest surged to record levels, with total bids reaching £16.5 billion, the highest amount ever recorded for a Cypriot sovereign debt issuance.
According to Cyprus News Agency, the Public Debt Management Office of the Ministry of Finance announced that the final yield was set at 3.25%, while the spread over mid-swap rates narrowed to 44 basis points. This marked a historic low and confirmed the strong confidence of the markets in the Cypriot economy.
As noted in the announcement, this outcome reflects the government's sound economic policy, which creates conditions of economic stability and security for investors. Fiscal discipline and the resilient fundamentals of the Cypriot economy have led to this very positive result, contributing to a reduction in the state's borrowing costs and ensuring uninterrupted access to international financial markets.
According to the announcement, 'the prudent fiscal and macroeconomic policy pursued by the government, with an emphasis on stability- and growth-enhancing measures, is expected to lead to similar or even better outcomes in the future'.
In a written statement, Minister of Finance Makis Keravnos expressed his full satisfaction with the strong success of the issuance, noting that investor interest was exceptionally high and far exceeded the amount sought by the Republic. 'The distinguished success of today's issuance reflects the confidence shown by the markets in the Cypriot economy, as a result of the rational economic policy pursued by the government, which is based on fiscal discipline and development-oriented practices, as well as the dynamism and resilience demonstrated by the Cypriot economy in an international environment marked by serious challenges and uncertainties,' he said.
Guided by fiscal discipline and financial stability, the Minister added, the government will continue to implement its economic policy aimed at sustained, stable and sustainable growth, creating attractive conditions for foreign and domestic investment, while focusing on the continued reduction of public debt as a percentage of GDP. This, he noted, allows for greater fiscal space to deepen the government's social policy for the benefit of lower- and middle-income groups.