Cyprus

Sovereign's new seven year deal and tenor offer followed recent rating upgrades

Euro SSA market rebuilds after recent volatility

◆ Issuer committed to cancelling as much old capital as possible ◆ Buying back above par ◆ All buying-back thanks to new AT1 providing capital optimisation

◆ Strong market supports AT1 return ◆ Lower funding, dedicated investors likely behind the infrequent issuer ◆ Will it be a true market reopener?

The government plans to bring a labelled issue every two or three years from now on

SSA issuers in euros have gone up a gear as Easter break nears

Cyprus concession looks higher than other SSAs this week, but bankers blame rating rather than systemic widening

Moody’s upgraded Cyprus on Friday, leaving it one notch below investment grade status and a step closer to reclaiming high grade ratings from all three of the major rating agencies.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, February 8. The source for secondary trading levels is ICE Data Services.

Rating: Ba2/BBB-/BBB-

Cyprus attracted sold demand when it hit the market for a new five euro benchmark on Tuesday. The trade was priced with a positive yield – a rarity for a eurozone sovereign bond in this part of the curve.

Cypriot banks could start selling covered bonds for the first time in a decade if the country clarifies and strengthens its issuing framework in line with new EU standards, Scope Ratings said in a report this week.