CNA News

Cypriot sustainable bond ESG sovereign bond of the year, Global Capital says

London-based Global Capital described Cyprus’ €1-billion inaugural ESG bond (4.125%) issued in April 2023 as the Sovereign-Supranational-Agency (SSA) Environmental/Social/Governance (ESG) Bond of the year.

Global Capital issued its Review 2023 and Outlook for 2024, noting that Cyprus “stole the show” in 2023 in the ESG Sovereign and Supranational sector.

“Few deals seem to capture the imagination as much as one with which a sovereign embarks on its ESG finance journey and Cyprus stole the show on that font in 2023”, Global Capital said in its report, published on its website.

Cyprus’ debut in the ESG bond sector took place in April 2023.

“It had been busy few days for sovereign syndications with Italy, and Greece also in the market, and Luxembourg and Slovenia pricing sustainability deals. Despite competition Cyprus’ ten-year was still a blow-out,” the report said, recalling that the sovereign received its largest ever book since returning to the international bond market in 2014 and was priced at fair value, “an outcome that beat expectations.”

The report also describes Cyprus strategic planning and ESG ambition as “even more impressive.”

“Its ESG needs may be limited compared with its larger peers but Cyprus is committed to maintaining a regular presence with a labelled issuance every two or three years. And it could not have kicked off this journey with a more remarkable inaugural trade,” Global Capital added.

In a press release the Finance Ministry said this acknowledgement is “particularly important as it constitutes tangible proof of the work of the Public Debt Management Office (PDMO) and of the esteem by international capital markets (institutions, banks and investors alike) for Cyprus as an issuer.”

The PDMO expressed gratitude to HSBC και J.P. Morgan which operated as structuring agents for the issuance.

The Ministry also thanked all officials in the various Ministries, Departments and Services which engaged in this effort.