The Bank of Cyprus (BoC) has confirmed that the European Bank for Reconstruction and Development (EBRD) has reduced its stake in the lender to zero, marking the end of its status as a shareholder.
- The Bank of Cyprus (BoC) has confirmed that the European Bank for Reconstruction and Development (EBRD) has reduced its stake in the lender to zero, marking the end of its status as a shareholder.
Details of the EBRD’s Exit
The confirmation came through a regulatory filing made on Tuesday, which revealed that the EBRD’s shareholding in the BoC, previously at 5.14 per cent, is now officially at 0.00 per cent following the complete disposal of its position. This transition was recorded in a TR-1 notification of major holdings submitted to the Central Bank of Ireland.
Timeline of Shareholder Changes
The threshold crossing occurred on September 4, 2025, with official notification received by the bank on September 8, 2025. The filing indicates that the EBRD no longer possesses any voting rights in the Bank of Cyprus, whether directly or through financial instruments.
Significance of the Share Disposal
This development follows the bank’s announcement on September 4 that the EBRD, identified as its last remaining legacy shareholder, had divested its entire 5.1 per cent stake at a price of €7.20 per share. The Bank of Cyprus indicated that there was strong interest in this transaction from various international institutional investors.
Investor Confidence in Cypriot Economy
In the context of the sale, the Bank of Cyprus expressed that the final allocation primarily went to long-term investors, particularly long-only funds. The bank described the level of demand as a demonstration of international institutional investors’ confidence in both the lender and the broader Cypriot economy.
Financial Implications
The bank characterised the sale price as “particularly favourable”, noting that a significant portion of the last legacy shareholder was sold at approximately 1.2 times tangible book value. This suggests a robust valuation and reflects positively on the bank’s recovery trajectory since the financial crisis.
EBRD’s Historical Role
The EBRD has played an instrumental role in the Cypriot banking sector since it became a shareholder in the Bank of Cyprus in 2014. This acquisition was part of broader initiatives aimed at stabilising and rebuilding the financial system following the banking crisis.
Return to Private Ownership
The EBRD’s exit signifies the complete return of the Bank of Cyprus to private ownership, a milestone in the lender’s post-crisis recovery narrative. The bank has highlighted the importance of the EBRD’s involvement in restoring stability to the sector over the past decade.
Bank of Cyprus Seeks to Strengthen Capital Position
On the same day as the EBRD’s exit announcement, the Bank of Cyprus also disclosed a cash offer to repurchase its outstanding €300 million Fixed Rate Reset Tier 2 Capital Notes, which are due in October 2031. The offer invites holders of these notes to tender them for cash at a price equivalent to 102.3 per cent of the principal amount.
Conditions for the Cash Offer
The offer is contingent upon the successful issuance of a new series of euro-denominated Fixed Rate Reset Tier 2 Capital Notes under its €4 billion European Medium-Term Note Programme. The purchase of any notes validly tendered will depend on the aggregate principal amount of the new notes being at least equal to the total amount of notes validly offered and accepted.
Investor Guidance and Market Conditions
Details regarding the offer are outlined in the tender offer memorandum dated September 9, 2025, which is subject to certain restrictions. Holders are encouraged to review this memorandum for comprehensive information about participation in the offer.
Ongoing Capital Management Strategy
The bank emphasised that both the new issuance and the cash offer are subject to market conditions and the bank’s discretion, highlighting their role within the ongoing capital management strategy. This move is part of the bank’s efforts to strengthen its capital position as it continues to navigate the post-crisis landscape.
