BOCH.L Regulatory News (BOCH)

Announcement

Completion of Project Helix - Sale of a portfolio of non-performing loans

Nicosia, 28 June 2019

Bank of Cyprus Holdings Public Limited Company ("BOC Holdings" and, together with its subsidiaries, the "Group") is pleased to announce the completion of Project Helix.

Project Helix (the "Transaction") refers to the sale of a portfolio of loans with a gross book value of €2.8 bn (of which €2.7 bn related to non-performing loans) (the "Portfolio") secured by real estate collateral to certain funds affiliated with Apollo Global Management LLC, the agreement for which was announced on 28 August 2018.

Cash consideration of c.€1.2 bn was received on completion, reflecting adjustments resulting from, inter alia, loan repayments received on the Portfolio since the reference date of 31 March 2018.

Overall, the Transaction is capital accretive, with a net positive impact on the Group capital ratios of c.70 bps1. At the end of 1Q2019, the Group's CET1 ratio and total capital ratio stood at 14.9% and 17.9% respectively, both pro forma for Project Helix.

The participation of the Bank of Cyprus Public Company Limited (the "Bank") in the senior debt in relation to financing the Transaction has been syndicated down from the initial level of €450 mn to c.€45 mn, representing c.4% of the total acquisition funding.

The Group remains focused on continuing to improve its asset quality position and to seek solutions, both organic and inorganic, to make the Bank a stronger and safer institution, capable of supporting the local economy.

For further information, please contact Investor Relations at investors@bankofcyprus.com.

[1] Based on the Group financial results for the quarter ended 31 March 2019

Group Profile

The Bank of Cyprus Group is the leading banking and financial services group in Cyprus, providing a wide range of financial products and services which include retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance. The Bank of Cyprus Group operates through a total of 108 branches in Cyprus. Bank of Cyprus also has representative offices in Russia, Ukraine and China. The Bank of Cyprus Group employs 4,156 staff worldwide. At 31 March 2019, the Group's Total Assets amounted to €21.7 bn and Total Equity was €2.5 bn. The Bank of Cyprus Group comprises Bank of Cyprus Holdings Public Limited Company, its subsidiary Bank of Cyprus Public Company Limited and its subsidiaries.