The government issued €10bn at a yield of 4.25%–higher than Cyprus recent yields on 10-year bonds but lower than the initial price guidance on Monday of 4.50%.

UK-based investors accounted for 62% of the final allocations. By sector fund managers took 52% and bank treasuries/private banks took 23%, while hedge funds accounted for 22%.

The issue came with the offer to switch the 4.75% bond due in June 2019, the 4.625% due in February 2020 and the 6.50% due in May 2020.

The finance minister, Harris Georgiades, said that €450 million will be used for the bond exchange while the remaining €550 million would be to boost state cash reserves and help the management of public debt for the period after Cyprus exits the financial support programme in March 2016.

The offer was issued at par and under English law.

The Republic of Cyprus is rated BB- (positive) by Standard & Poor’s, B3 (stable) by Moody’s, B+ (positive) by Fitch and BL (stable) by DBRS.

Source: InCyprus