I would like to express my satisfaction with yesterday's successful issue of the 10-year Sustainable Bond by the Republic of Cyprus.
The extremely high interest of domestic and international investors in the issue was reflected in the final size of the offer book, which exceeded 12 billion and is the largest offer book in the history of the Republic of Cyprus' issuance. The achievement of this performance, in the current volatile and uncertainty-filled international environment, increases its significance and demonstrates the confidence of investors in the Cypriot economy and the expressed economic policy of the new Government.
The final interest rate of 4.125% (yield 4.219%) is in line with the pricing of the Republic's existing bonds in the international financial markets. The high level of interest allowed the cost to be compressed to levels close to those of the secondary market, which again is being achieved for the first time in the Republic's international issuances.
It should also be noted that the Republic's successful Sustainable Bond issue is also an important new venture, as in addition to indicating the Republic's continued commitment to supporting issues related to society and the environment, it has ensured Cyprus' entry into a new and dynamic market environment. The greater access to investors provided by this issue is expected to help contain borrowing costs and manage public debt more effectively in the coming years.
Finally, I would like to stress that yesterday's successful issue has once again demonstrated the confidence of the international investment community in the Republic of Cyprus. Prudent fiscal policy and ensuring macroeconomic stability is paying off, especially in a difficult and uncertain environment. For this reason, it is particularly important to continue these policies in order to ensure the uninterrupted financing of the state on the best possible terms while mitigating risks.
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For the final results of the 10-year Sustainable Bond issue in Greek and English click here.
(AF)
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