REG - Bank of Cyprus Hldgs - Results of Additional Tier 1 Tender Cash Offer

Bank of Cyprus HoldingsAnnouncement

20/06/2023 12:30

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RNS Number : 3245D  Bank of Cyprus Holdings PLC  20 June 2023

Announcement

Results of Additional Tier 1 Tender Cash Offer

Nicosia, 20 June 2023

 

 

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

 

 

Bank of Cyprus Holdings Public Limited Company (the 'Company' and, together
with subsidiaries, the 'Group') announces today the results of the Company's
invitation (the 'Offer') to holders of its outstanding €220 mn Fixed Rate
Reset Perpetual Additional Tier 1 Capital Securities callable in December 2023
(ISIN: XS1865594870) (the 'Existing Capital Securities') to tender their
Existing Capital Securities for cash purchase by the Company at a price equal
to 103% of the principal amount. The Company will also pay the accrued
interest due on such Existing Capital Securities up to (but excluding) the
settlement date on 21 June 2023.

The Company received valid tenders of c.€204 mn in aggregate principal
amount, or c.93% of the outstanding Existing Capital Securities, all of which
were accepted by the Company; c.€16 mn in aggregate principal amount of the
Existing Capital Securities remain outstanding. As a result, a cost of c.€7
mn(1) is expected to be recorded directly in the Company's equity in 2Q2023,
forfeiting the relevant future coupon payments.

The successful uptake of the Offer, in conjunction with the expected issue on
21 June 2023 of €220 mn Fixed Rate Reset Perpetual Additional Tier 1 Capital
Securities (ISIN: XS2638438510) (the 'New Capital Securities'), demonstrate
the Group's proactive management of its capital base by refinancing the
Existing Capital Securities at a lower coupon rate, while maintaining the
Group's optimised capital structure. The New Capital Securities will continue
to contribute to the Group's Total Capital Ratio by c.220 bps and are expected
to be MREL eligible. The issue of the New Capital Securities will demonstrate
the significant improvement of the Company's credit spread of c.350 bps,
compared to the credit spread in respect of the Existing Capital Securities,
reflecting the successful transformation of the Group into a well capitalised,
diversified and sustainably profitable financial services organisation.

 

The purchase of Existing Capital Securities pursuant to the Offer is
contingent on the successful concurrent issue of the New Capital Securities.

 

Goldman Sachs Bank Europe SE and BofA Securities Europe SA acted as Dealer
Managers.

 

For further information, please contact Investor Relations at
investors@bankofcyprus.com (mailto:investors@bankofcyprus.com) .

 

1.     For the purposes of this announcement, transaction costs are not
included in the impact on the equity

 

 

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.

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