Bloomberg rated the bond’s yield at a maximum of 4.5%, expected to fluctuate downward depending on the supply.

Pricing of the new bond is expected to begin at 15:45 (London time) with its trading in the London Stock Exchange.

The Ministry seeks to exploit the very low yields on Cyprus bonds (around 3%) and the significantimprovement observed in the macroeconomic environment.

The Ministry stresses that the funding needs for 2015 and 2016 are already covered.

In April, Cyprus raised € 1 billion from the international markets through the issuing of a 7-year bond with an average yield close to 4%.

In 2011, Cyprus was excluded from the markets. At the time, yields of its ten-year bond in the secondary market exceeded 7%, essentially making state borrowing impossible.

Source: InCyprus