Bk. Cyprus Hldg Regulatory News (BOCH)

Announcement

Issue of Senior Preferred Notes by Bank of Cyprus Public Company Limited

Nicosia, 18 July 2023

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. At 31 March 2023, the Bank of Cyprus Group operated through a total of 64 branches in Cyprus, of which 4 operated as cash offices. The Bank of Cyprus Group employed 2,883 staff worldwide. At 31 March 2023, the Group's Total Assets amounted to €25.4 bn and Total Equity was €2.1 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.

Bank of Cyprus Holdings Public Limited Company ("BOC Holdings" and, together with its subsidiary, Bank of Cyprus Public Company Limited (the "Bank"), and the Bank's subsidiaries, the "Group") announces today that the Bank has successfully launched and priced an issuance of €350 mn of senior preferred notes (the "Notes") under its EMTN Programme.

The Notes were priced at par with a fixed coupon of 7.375% per annum, payable annually in arrear, until the Optional Redemption Date i.e. 25 July 2027. The maturity date of the Notes is 25 July 2028; however, the Bank may, at its discretion, redeem the Notes on the Optional Redemption Date subject to meeting certain conditions (including applicable regulatory consents) as specified in the Terms and Conditions. If the Notes are not redeemed by the Bank, the coupon payable from the Optional Redemption Date until the Maturity Date will convert from a fixed rate to a floating rate and will be equal to 3-month Euribor + 409.5 bps, payable quarterly in arrear.

It is expected that settlement of the Notes will occur on 25 July 2023 and 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 90 institutional investors, with a peak orderbook of €950 mn and final pricing 37.5 basis points tighter than the initial pricing indication. The transaction follows the successful issuance of Additional Tier 1 Capital Notes by BOC Holdings in June 2023.

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.

The Notes are expected to comply with the criteria for the Minimum Requirement for Own Funds and Eligible Liabilities ("MREL") and to contribute towards the Bank's MREL requirements. This transaction improves the Bank's MREL ratio to 24.26%1 of risk weighted assets ("RWA") and to 11.24%1 of Leverage Ratio Exposure ("LRE"), advancing its build-up toward the final requirements of 24.35% of RWA and 5.91% of LRE which the Bank must meet by 31 December 2025.

Barclays, BofA Securities Europe SA, Citi and Goldman Sachs Bank Europe SE acted as Joint Lead Managers. The Cyprus Investment and Securities Corporation Limited (CISCO) acted as Co-Manager.

Sidley Austin LLP acted as English legal advisers and Chryssafinis & Polyviou LLC acted as Cypriot legal advisers to the Bank in this transaction.

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

1 Based on the financial results for the quarter ended 31 March 2023, including the AT1 Notes of €220 mn issued in June 2023.