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The Cyprus ten-year bond issued on Tuesdayrepresents the lowest reoffer yield and the lowest coupon that the country has ever achieved in international capital markets  for a benchmark size euro-denominated syndicated issuance and the largest ever transaction for the sovereign in this currency, the Ministry of Finance has said.

According to a press release by the Ministry of Finance’s public debt management office which includes the details of the issuance the order-book closed at 11:00 GMT yesterday “with a final size of € 5.675bn (excl. JLM interest) and approx. 279 different investors participating in the transaction, representing the largest order-book Cyprus has achieved since its return to markets in June 2014.”

“The new 10yr benchmark, which extends the existing Cyprus yield curve, represents the lowest reoffer yield (2.40%) and the lowest coupon (2.375%) that the Republic of Cyprus has ever achieved in international capital markets for a benchmark size Euro-denominated syndicated issuance,” the press release says.

By national size, it adds, “it is also the largest syndicated Euro transaction from the sovereign since the return to capital markets in 2014, and matches the largest ever transaction for the sovereign in this currency.”

It continues noting that the issuance had a broad geographic distribution of investors, comprised largely of international investors across Europe (28%) and the UK (28%). This was followed by Cyprus (19%), Germany / Austria (14%), Greece (6%), US Offshore (3%) and investors from the rest of the world (2%)

“By investor type, the quality of the orderbook was high with real-money demand dominating the orderbook,” it says.

Fund Managers were the largest investor class at 42%, closely followed by banks and private banks (40%), followed by hedge funds (8%), central banks or other official institutions (4%), insurance / pension (3%) and other (3%).

Source: Stockwatch