PDMO says demand for 6-year retail bonds at € 61.5 mln so far
Demand for 6-year Cyprus government retail bonds shot up to EUR 27.4 mln this month, with most of the interest coming from foreign investors, boosting the total so far to EUR 61.5 mln, half of the amount the state planned to raise from investors.
The Cyprus Public Debt Management Office at the Ministry of Finance announced it approved 62 applications amounting to EUR 27,407,900 for the purchase of the seventh series (December) of six-year government bonds for individuals. Of these, 52 were Cypriots applicants for EUR 2.4 mln, while ten foreign investors subscribed to EUR 25 mln or 91% of the total. This is up from EUR 7.14 mln subscribed for the November series.
Applications for the December series was the highest value with the monthly ceiling set at EUR 10 mln in order to raise EUR 120 mln a year. The annual coupon rate starts from 2.75% and averages at an attractive 4% over a six-year period, with a minimal 3% income tax on the interest, far better than the 30% imposed on all interest-yielding products.
The PDMO said that of the total issued so far to 450 investors, EUR 37.54 mln or 61% was subscribed by foreign investors. Next, is the January 2015 series, the eighth so far, with applications open from December 1 to 19 and issued on January 2, 2015.