The successful issuance of the 10-year Sustainable Bond by the Republic of Cyprus proves the confidence of investors in the Cypriot economy and the economic policy expressed by the new Government, Finance Minister Makis Keravnos said in a written statement on Wednesday. The Minister expressed his satisfaction over yesterday’s successful issuance of the 10-year Sustainable Bond, adding that the extremely high interest of domestic and international investors was reflected in the final size of the offering book, which, at over 12 billion, is the largest in the history of the Republic of Cyprus’ issuance. “Achieving this performance in today’s volatile and uncertainty-filled international environment increases its importance and demonstrates the confidence of investors in the Cypriot economy and the expressed economic policy of the new Government,” he said. He added that the coupon of 4.125% (reoffer yield of 4.219%) is in line with the pricing of the Republic’s existing bonds in the international financial markets, while the high interest has allowed the compression of costs to levels close to those of the secondary market, which, he said, is again achieved for the first time in the Republic’s international issuances. He also noted that the successful issuance of a Sustainable Bond by the Republic is also an important new venture, as it not only indicates the Republic’s continued commitment to supporting issues related to society and the environment, but has ensured Cyprus’ entry into a new and dynamic part of the bond market that is expected to grow significantly in the coming years. He added that the greater access to investors provided by this issuance is expected to help contain borrowing costs and manage public debt more effectively in the coming years. Concluding, the Finance Minister stressed that “yesterday’s successful issuance has once again demonstrated the confidence of the international investment community in the Republic of Cyprus”, adding that “prudent fiscal policy and ensuring macroeconomic stability is paying off, especially in a difficult and uncertain environment”. “For this reason, it is particularly important to continue these policies in order to ensure the uninterrupted financing of the state on the best possible terms while mitigating risks,” Keravnos concluded.
Source: Cyprus News Agency