CYPRUS New 7Y bond issuance priced at a historically low yield

On June 21 th , Cyprus tapped international markets with a new 7Y-Eurobond for the second time after exiting from the Economic Adjustment Programme in March 2016. In the latest tender, the Public Debt Management Office (PDMO) sold an offered amount of €850mn of 7-year government bonds as part of its €9bn Euro Medium Term Note (EMTN) programme. Citigroup, Goldman Sachs and HSBC were appointed by the Cypriot government as lead managers. The issue was more than four times over-subscribed with total bids amounting to €3.7bn. The average accepted price was at 99.686 and the corresponding yield at 2.80%. The latter compares with an initial price target of 3.0% and guidance of 2.9%. The issue matures on June 27, 2024 and bears a 2.750% fixed annual coupon.