The Republic of Cyprus successfully completed the issuance of a new €1 billion 10-year bond on Wednesday, attracting record investor interest, with total bids reaching €16.5 billion. This is the highest demand ever recorded for a Cypriot sovereign debt issuance.
According to a press release from the Public Debt Management Office of the Ministry of Finance, the final yield was set at 3.25%, while the spread over mid-swap rates narrowed to 44 basis points. This represents a historic low, confirming strong market confidence in the Cypriot economy.
The Ministry noted that the outcome reflects the government’s sound economic policy, which has fostered conditions of stability and security for investors. Fiscal discipline and resilient economic fundamentals were highlighted as key factors behind the strong result, contributing to lower borrowing costs and ensuring uninterrupted access to international financial markets.
The announcement added that the prudent fiscal and macroeconomic policy pursued by the government, with an emphasis on stability and growth-enhancing measures, is expected to lead to similar or even improved outcomes in future bond issuances.
In a written statement, Finance Minister Makis Keravnos expressed full satisfaction with the success of the issuance, noting that investor demand far exceeded the amount sought by the Republic.
He said that the strong performance reflects market confidence in the Cypriot economy, attributing it to disciplined fiscal management, development-oriented economic policies, and the resilience shown by Cyprus in an international environment characterised by uncertainty and challenges.
The Minister added that the government will continue to pursue policies grounded in fiscal discipline and financial stability, aiming for sustained and sustainable growth. This approach, he noted, supports the continued reduction of public debt as a share of GDP and creates additional fiscal space to strengthen social policy, particularly for lower- and middle-income groups.