Nicosia: Minister of Finance Makis Keravnos announced that the Republic of Cyprus received a staggering 16.5 billion euro offer for the issuance of a 10-year, 1 billion euro bond, a move he described as a historic event. The interest rate secured for the bond is 3.25%, marking it the lowest among recent issuances.
According to Cyprus News Agency, Keravnos emphasized that this level of investment interest in a Cypriot bond is unprecedented. The Republic of Cyprus initially sought bids for 1 billion euros, but the overwhelming response underscores a significant milestone in the country's financial history.
Keravnos pointed out that the successful issuance with such a low interest rate highlights the confidence foreign investors have in Cyprus's economic policies. He noted that the interest rate achieved is lower than those of recent bond issuances by Greece, Portugal, and other countries, underscoring the attractiveness of Cyprus's economic environment.
The Finance Minister further stated that this event reflects the effective economic strategies implemented by the Cypriot government, fostering a stable and secure investment climate. The government's commitment to this policy aims to sustain economic growth and ensure that the benefits are shared with society.
Addressing queries regarding the bond, Keravnos clarified that it is not additional debt but a replacement for an expiring one. He also highlighted the government's success in reducing the public debt to approximately 55%, surpassing the target of 60% set for the end of the year-a goal originally anticipated for 2025. This development, he noted, enables increased spending on development projects and social policies.