(Alliance News) - Bank of Cyprus Holdings PLC on Thursday said it will issue EUR300 million in green senior preferred notes under its euro medium-term note programme, which it expects to settle on Thursday next week.
The Nicosia-based lender with 64 branches across Cyprus said the notes were priced with a fixed coupon of 5% per year, payable annually in arrears, until an optional redemption date of May 2, 2028.
Bank of Cyprus said the maturity date of the notes is May 2, 2029, but it may redeem the notes a year earlier at its discretion.
If the notes are not redeemed by Bank of Cyprus, the coupon payable between the optional redemption date and maturity date will be converted to a floating rate and be equal to three-month Euribor plus 197.1 basis points. This would be payable quarterly in arrears.
The notes will be listed on the Luxembourg Stock Exchange's Euro MTF market.
"The issuance was met with strong demand, attracting interest from more than 120 institutional investors, with a final orderbook over 4 times over-subscribed at EUR1.3 billion and final pricing 50 basis points tighter than the initial pricing indication," said Bank of Cyprus.
"The success of the transaction, in terms of investor participation and final pricing, represents yet another milestone in terms of market recognition of the group's improved financial profile."
Shares in Bank of Cyprus were down 1.8% to 323.00 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
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Bk. Cyprus Hldg (BOCH)