The Cyprus Popular Bank Public Company Ltd (Laiki Bank) announced the successful completion of a Subordinated Debt Issue (Tier 2 Capital), totalling Euro 450 million through its European Medium Term Notes (EMTN) Programme.

According to the announcement, this Issue is the largest coming out of Cyprus excluding the Cyprus Government and one of the largest in Europe coming from a Bank of Laiki’s size, indicating the confidence shown by institutional investors to the Laiki Group.

“The Issue was in the form of Subordinated Bond, maturing in 10 years. Laiki has the option to call it in after 5 years. The interest rate was set at three month Euribor plus 0,75%, increased by 1% if the Bond is not called in after five years. The Bond will be listed on the Luxemburg Stock Exchange”, the announcement said.

The Bond was allocated to a large number of institutional investors from Europe and the Middle East. Total demand for the Issue exceeded half billion euro.

Lead Managers of the Issue were Deutche Bank, Citigroup, Natexis Banques Populaires and Alpha Bank (no books).

According to the Group, taking into account market conditions of the last few days and the size of the issue, we consider the issue very successful. It will strengthen the capital base of the Group and enhance its future plans.