Cyprus Introduces New Six-Year Bonds with Adjusted Interest Rates
The Republic of Cyprus is set to issue new six-year bonds with a revised interest rate structure aimed at attracting individual investors. The Public Debt Management Office has outlined the specifics of the new bond series, which will see a slight uptick in the initial interest rates for the first two years.
Investors will now be able to secure an annual nominal interest rate of 1.25% for the first 24 months, marking an increase from the previous rate of 1.00%. This adjustment is part of a strategic move to make these government bonds more appealing in a competitive market.
Following the initial two-year period, the interest rates will experience minor fluctuations. The period from 24 to 48 months will witness a small increase, while the subsequent months until maturity will see a slight decrease in the annual nominal interest rate.
The Public Debt Management Office has provided a detailed breakdown of the expected yields for these bonds. If held to maturity, investors can anticipate a weighted average annual interest rate of approximately 1.367%. This figure represents a calculated average over the entire six-year term of the bond.
Individuals interested in these new investment opportunities are encouraged to mark their calendars for June 2024, when applications for the 2nd series (July) of these six-year nominal government bonds will be accepted. The Cyprus Stock Exchange stands ready to assist potential investors with inquiries and can be reached at the contact number 22712300 for further details.
With these revised interest rates, the Republic of Cyprus aims to strike a balance between offering competitive returns and maintaining fiscal responsibility. These bonds represent an opportunity for individual investors to diversify their portfolios while contributing to the nation’s economic stability.
