Bank of Cyprus priced its first public issue since bailing in bondholders during 2013’s Cypriot banking crisis, in one of the strongest indicators yet that its turnaround story has won over investors.
The 250-million-euro 10-year non-call five-year Tier 2 bond (rated Caa3), priced at 9.25 percent, increased in size from 200 million and inside initial price talk of 9.5 percent.
It drew in excess of 600 million of orders from more than 80 investors and had rallied almost five points by Friday afternoon.
Bank of Cyprus (Caa2/B-) has made great strides since imposing losses on subordinated and senior bondholders four years ago.
It made the final repayments on its 11.4-billion-euro emergency liquidity assistance last week in what the lender described as a “significant milestone” on its journey back to strength.