Bank of Cyprus announced on Thursday that it has signed an agreement with Cyprus Development Bank regarding the acquisition of a portfolio of performing loans, deposits, and certain other assets and liabilities, at a price close to their nominal value.
The transaction is being carried out on standard commercial terms and includes a portfolio of performing loans of approximately €150 million and deposits of around €500 million.
Following synergies, the transaction is expected to have a moderately positive impact on the Group’s income statement, with a limited effect on capital of around 35 basis points.
The transaction is expected to be completed in the second half of 2026, subject to the fulfilment of certain conditions, including the receipt of the necessary regulatory approvals.
As stated, the transaction supports the Group’s strategy for medium-term growth in its performing loans and deposits portfolio.
cdbbank Statement
In its own announcement, Cyprus Development Bank noted that the assets and liabilities to be transferred to Bank of Cyprus include a portfolio of performing loans with a gross book value of approximately €150 million and deposits of around €500 million, as at 31 December 2025, with any balancing difference to be settled in cash.
Based on the agreed terms, the total estimated discount on the assets to be transferred is approximately €3 million.
In addition, the bank estimates transaction-related costs in the range of €2–4 million.
The transaction is being executed on standard business terms. The bank’s Board of Directors obtained an independent fairness opinion from BDO Ltd, confirming that the consideration and financial terms of the transaction are fair from a financial perspective.
It is emphasised that the transaction is considered an appropriate step for the bank, taking into account the interests of its stakeholders, including depositors, creditors (including bondholders) and shareholders, while customer service will continue uninterrupted.
Assets and liabilities not included in the transaction — including Tier 2 subordinated bonds — will continue to be serviced by the bank in accordance with their terms and conditions.
Following completion, the bank’s operations will focus on the management and servicing of its remaining assets and liabilities.