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Public debt management: Review of operations for the 3rd Quarter of 2018

Public debt management: Review of operations for the 3rd Quarter of 2018

New issues: On the 18th of September the Republic of Cyprus issued a 10-year EMTN bond of €1,5 bn with a coupon of 2,375% and a yield of 2,40%. Geographically, the Republic of Cyprus achieved a broad distribution of investors largely from the UK (28%), Germany and Austria (14%) and the rest of Europe (53%). The largest investor class were Fund Managers (42%) closely followed by banks and private banks (40%).

In July five new government bonds were issued through private placement for a total amount of €3,19 bn maturing between 2018 and 2022. These bonds replaced the government bonds issued in April of 2018 amounting to €2,35 bn.

The weighted average yield at the Treasury Bills auction in September 2018 marginally increased from -0,27% to -0,24% compared to the June 2018 auction. The bid-to-cover ratio in September increased from 1,48 to 2,00 compared to the ratio in June. The total outstanding stock of Treasury Bills for this quarter remained unchanged to €300 million. The issuance of 6-year retail bonds continued with sales of €22 million for the third quarter of 2018.

Debt redemptions:

The short term debt redemption for the third quarter of 2018 amounted to €300 million. Repayment for retail securities amounted to €17 million. Loan amortizations reached the amount of €321 million out of which €315 million concerned the payment of one of the loan instalments from the Russian Federation.