ECONOMY

Foreigners buy bulk of Cyprus bond issue

Foreign investors bid for more than three times the amount of retail bonds offered by Cyprus in December and bought the vast majority of six-year issue, the Finance Ministry said on Tuesday.

Cyprus accepted bids for bonds worth 36.65 million euros from 49 investors after an initial offer of 10 million euros worth of bonds, financial authorities said.

Bailed out by international lenders in 2013, Cyprus launched a retail bond program in May 2014.

The coupon on the bonds fluctuates between 2.75 and 5.75 percent, depending on how quickly they are redeemed.

Some 93 percent of the December bids were submitted by foreign investors, Cyprus’s Finance Ministry said in a statement.

The issue date is January 2, 2015.

Registration for a second bond issue to retail investors worth up to 10 million euros would be valid from January 2 to January 20, 2015, with a February 2 issue date, the ministry said.

[Reuters]