Cyprus for the first time ever borrowed from capital markets with a zero coupon with its €1 billion 5-year bond issued yesterday attracting highest ever bidding, the Finance Ministry’s Public Debt Management Office (PDMO) has said.
The orderbook during yesterday’s 5-year EMTN issuance peaked at €8.5 billion representing a bid-to-cover ratio of 8.5, while the increased bidding pressured the yield downwards to just 0.05% in reoffer yield while the coupon was zero.
“This benchmark issue priced with the lowest reoffer yield and lowest coupon that has ever been achieved by the Republic of Cyprus since its return to international capital markets in 2014,” the PDMO said, adding that at its peak of €8.5bn, bidding represented “the largest orderbook the Republic of Cyprus has achieved in a single-tranche syndicated transaction since its return to the capital markets in 2014.”
Furthermore, Cyprus’ new benchmark attracted “a notably high quality and diverse set of investors.”
With regard to the geographical distribution, 85% of orders came from international investors.
“Of these participants, the majority originated between the United Kingdom and Nordic countries,” the PDMO added, noting that by investor type, the majority of investors for both tranches were fund managers, followed by banks/private banks and central banks/official institutions.