British Investors Dominate Cyprus Bond Sale
UK-based investors were responsible for the purchase of some two thirds of Cyprus’ most recent bond sale, which – issued last Tuesday – marked the Government’s second successful foray into international markets in recent months.
According to international sources, British investors purchased 62% of the €1billion 7-year bond issue, while investors from other European states acquired 30.5%.
These bonds will be listed on the London Stock Exchange, and carry an annual interest of 3.875%, the island’s Ministry of Finance has revealed.
Investors from the rest of the world bought 6.5% of the issue, while Cypriot investors purchased just 1%.
“By investor type, the quality of the order-book was very high with very strong granularity,” the Finance Ministry noted. “Real-money demand dominated the order-book, at over 60%, with fund managers the largest investor class at 45%, and well supported by hedge funds and private bank interest.”
The involvement of hedge funds in the issue peaked at 39.5%, while that of private banks was recorded at 13.5%, it concluded.
SOURCE: GOLD NEWS