Bank of Cyprus Flourishes in the Athens Stock Market
Bank of Cyprus Successfully Issues €300 Million Subordinated Bond
Bank of Cyprus has announced a successful bond issue, raising €300 million through the sale of a subordinated bond. The bond, which matures on September 18, 2036, has attracted over 100 institutional investors.
The bond was issued at 99.632%, and the coupon for the notes stands at 4.25%. The yield for the new capital notes is 4.321%, providing a steady income stream for investors. Interest will be paid annually in arrears.
The successful bond issue reinforces the solid picture presented in the H1 2025 results, where the bank reported a net profit after tax of €235 million. Basic earnings per share were €0.54 in H1 2025, and the adjusted cost-to-income ratio remained low at 36%.
Return on Tangible Equity (ROTE) climbed to 18.4% in H1 2025, surpassing annual targets. This strong performance has led analysts to expect average distribution yields of 8% annually from Bank of Cyprus, the highest among Greek banks.
Investment firms such as Wellington Management Group and Wood & Company have shown confidence in the bank's future prospects. Wellington Management Group increased its stake in Bank of Cyprus to over 6% (26,239,606 shares), while Wood & Company raised its price target to €9.34, maintaining a Buy rating. Euroxx, another investment firm, considers Bank of Cyprus a "dividend champion" with a potential 30% upside.
Euroxx has also upgraded its price target to €10 per share, giving an Overweight rating to Bank of Cyprus. This positive outlook is based on Wood & Company's forecasts of strong profitability, high returns, and attractive valuation through 2027 for Bank of Cyprus.
Pricing for the bond closed with a spread of 195 bps-35 bps lower than initial guidance, indicating strong demand from investors. The final order book for the bond exceeded €3 billion, more than 10 times oversubscribed, further underscoring the confidence in Bank of Cyprus's future.
With this successful bond issue, Bank of Cyprus continues to demonstrate its financial strength and attractiveness to investors, positioning itself well for the future.
Read also:
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
- Unveiling Innovation in Propulsion: A Deep Dive into the Advantages and Obstacles of Magnetic Engines
