Cyprus has mandated investment banks to manage a double bond issue comprising a 5-year and a 30-year, euro-based bonds, the country’s Ministry of Finance announced on Tuesday.
This will be the first time Nicosia will borrow money on the international market for such a long duration.
Until now, the longest bond the Cypriot government had ever launched was one with a 15-year term.
Cyprus’ Finance Minister Harris Georgiades said that the Ministry is considering an early repayment of the loan it obtained in 2011 from the Russian Federation.
The Russian loan’s outstanding amount at this juncture is €1.57 billion.
The announcement of the government’s intention to repay that loan brought the interest rate on the country’s 10-year bond to a one-month high of 1.61 percent.
With information from CNA