REG - Bank of Cyprus Hldgs - Issue of Senior Preferred Notes

Bank of Cyprus HoldingsAnnouncement

18/07/2023 16:45

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RNS Number : 4194G  Bank of Cyprus Holdings PLC  18 July 2023

 
 

Announcement

 

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

 

 

Nicosia, 18 July 2023

 

 

 

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014.

 

 

 

 

 

 

 

 

 

 

 

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 (mailto: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.

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