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Recent Developments boosting Cyprus’ Economic Outlook

The Government of Cyprus issued its first ever 15 year bond at 2.75%. The EUR 1bn Bond was oversubscribed more than 8 times!

The Republic of Cyprus, successfully launched a first ever 15-year bond, due 26 February 2034, the longest in its history. The EUR1bn bond carries a coupon of 2.75%. Citi, Goldman Sachs and HSBC were joint book runners. The success of this transaction highlights the strong support from the international investor base for the Republic of Cyprus.

Final demand of over EUR 8.1bn represents the largest order-book achieved by a Republic of Cyprus benchmark transaction. The final cash price of 99.903% reflecting a re-offer yield of 2.758%, also offered a minimal new issue concession over the theoretical fair value of the transaction.

Investor Allocations: Fund Managers 55%, banks 20%, insurance and pension funds 10%. Domestic investors accounting for only 9% of the final allocations and 27% of the bonds placed in Germany, Switzerland and Austria.

Discovery of a natural gas resource of approximately 5 to 8 trillion cubic feet in Cyprus’ offshore. The resource was the largest discovery so far discovered in Cyprus’ Exclusive Economic Zone (EEZ) and according to official data one of the greatest discoveries in the world in recent years!

Energy giant ExxonMobil and Cyprus government announced a discovery of a natural gas resource of approximately 5 to 8 trillion cubic feet in Cyprus’ offshore block 10. The discovery of this high-quality reservoir demonstrates the potential of Cyprus’ EEZ.

ExxonMobil’s Vice-President Tristan Asprey said he was very encouraged by the discovery and added that in the coming months, there would be an appraisal drilling, in order to determine the full potential of the field. The well, located in Block 10, encountered a gas-bearing reservoir of approximately 436 feet (133 meters). The well was safely drilled to 13,780 feet (4,200 meters) depth in 6,769 feet (2,063 meters) of water.

Block 10 is 635,554 acres (2,572 square kilometers). ExxonMobil Exploration and Production Cyprus (Offshore) Limited is operator and holds 60 percent interest in the block. Qatar Petroleum International Upstream O.P.C. holds 40 percent interest.

4th March 2019

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