Capital markets continue to show confidence in the Cypriot economy despite the challenging international economic situation amid the Covid-19 pandemic, Minister of Finance Constantinos Petrides said following an “extremely successful 5-year bond issuance.”

On Tuesday, Cyprus raised €1 billion in a 5-year bond EMTN issuance with the book oversubscribed by eight times while the bond’s yield is estimated at 0.05% to 0.06%.

Despite the fact that “final pricing is expected later in the day, we expect (the yield) to range between 0.05% and 0.06% which is the lowest yield ever achieved by the Republic for a 5-year benchmark,” Petrides said in written statement.

Petrides added that total offers reached €8 billion, which “combined with the indicative yield shows that in this internationally challenging economic situation due to the pandemic international markets continue to show confidence in the Cypriot economy and its policies.”

“With the crisis gravely affecting a large part of economic activity, the issue of this bond strengthens the liquidity to tackle the pandemic’s economic impact,” Petrides said, adding that the “the government’s primary concern was and remains, to secure the necessary ammunition that would enable us to support the welfare state and the health system until the economy recovers, while securing fiscal sustainability.”

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