Bank of Cyprus lifts yield on 10-year convertible eurobond to 7.5% for first year, up from 6.5%

By Rebecca Melvin

New York, July 11 - Bank of Cyprus PCL said Friday that it decided to revise its pricing on its €573.41 million of 10-year convertible bonds to yield 7.5% for the first year, up from 6.5% previously, according to a news release.

The bonds will bear interest thereafter at a floating rate equal to six-month Euribor plus 100 basis points for the next four years and to six-month Euribor plus 300 bps for the last five years.

Initially, the bonds had been expected to bear interest in the last five years at six-month Euribor plus 200 bps.

Relating the price range for the strike price in the event of unsubscribed convertible bonds, this price range has been set at €1.00 to €1.01. The strike price will be determined via the method of bookbuilding, the release stated.

As previously reported, the bonds are non-callable for five years, and the conversion price is €10.50.

Cyprus Investment and Securities Corp. Ltd. is lead bookrunner for the offering, which is expected to be listed on the Cyprus Stock Exchange and the Athens Exchange.

Proceeds will be used to strengthen the Bank of Cyprus Group's capital adequacy.

Based in Nicosia, Cyprus, the Bank of Cyprus is a banking and financial services group.

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