PDMO says de­mand for 6-year re­tail bonds at € 61.5 mln so far

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.