COVERED BONDS ISSUE
Announcement
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Covered Bonds Issue |
Nicosia, 12 December 2011
Bank of Cyprus Public Company Ltd (“the Bank”) completed the issuance of €1 bn Covered Bonds on 12 December 2011. The issue, which is under the Bank's €5 bn Covered Bond Programme, has a maturity of three years with a potential extension period of one year, pays annual interest rate of 3 months Euribor +1,25% and is rated Baa3 (on review for downgrade) by Moody's Investors Services.
The bonds are issued under the Cypriot Covered Bond legislation which came into effect on 23 December 2010 and the Covered Bond Directive of the Central Bank of Cyprus.
The cover pool comprises residential loans secured by mortgages on properties located in Cyprus and complementary assets in the form of deposits with credit institutions or other eligible investments in accordance with the Cypriot legislation.
The Covered Bonds have been approved to be listed and to commence trading on the Luxemburg Bourse on 12th December 2011.