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Tag: Eurobank

  • Cyprus Business Update: Eurobank’s €400 Million Bond and Thriving Property Market

    Cyprus Business Update: Eurobank’s €400 Million Bond and Thriving Property Market

    cyprus business — Cyprus’s business landscape is showing robust signs of growth, with Eurobank announcing a significant €400 million bond issuance alongside a flourishing property market.

    • cyprus business — Cyprus's business landscape is showing robust signs of growth, with Eurobank announcing a significant €400 million bond issuance alongside a flourishing property market.
    • Investors can expect a fixed coupon of 4.125 per cent per annum, providing a steady return until the first reset date.
    • Hadjimanolis highlighted that the sector stands at a pivotal point, where leveraging technology and innovation can foster a sustainable future.
    • At the EU level, emissions intensity declined by 34 per cent during the same period, with Cyprus among the countries demonstrating substantial progress.
    • While the euro area's debt-to-GDP ratio rose to 88.5 per cent, Cyprus's decline is indicative of its strong fiscal management and economic stability.

    Cyprus business: Eurobank’s Bond Issuance

    On Friday, Eurobank S.A. confirmed the successful pricing of €400 million in fixed rate reset subordinated tier 2 notes. This issuance represents a major funding milestone for the bank, reflecting strong international investor demand.

    The notes, which are set to mature on April 29, 2037, will provide Eurobank with long-dated capital to meet its regulatory and funding requirements. The structure allows for the notes to be callable at par between January 29, 2032, and April 29, 2032, under the designation of 11.25NC6.25.

    Investors can expect a fixed coupon of 4.125 per cent per annum, providing a steady return until the first reset date.

    Real Estate Market Growth

    In parallel, the Cypriot real estate sector has recorded impressive growth. According to the Real Estate Agents Registration Council, the total value of property transfers in 2025 surpassed €4.7 billion, with a notable 15 per cent increase in sales documents compared to the previous year.

    Data from the Department of Lands and Surveys indicates that 18,114 sales documents were filed nationwide from January to December 2025, up from 15,797 in 2024. While the volume of transfers rose marginally by 0.77 per cent, the total value saw a substantial increase of around 10 per cent, indicating a shift towards higher-value properties.

    Marinos Kineyirou, president of the Real Estate Agents Registration Council, remarked, “The picture of 2025 is the clearest proof of the resilience and attractiveness of the real estate sector,” highlighting its capacity to absorb shocks from the global environment and return to a strong growth trajectory.

    Improving Banking Sector

    The Central Bank of Cyprus reported a decline in the non-performing loan ratio, showcasing ongoing improvements in the banking sector. By the end of October 2025, the non-performing loans ratio, excluding loans to central banks and credit institutions, fell to 4.2 per cent, down from 4.5 per cent in September 2025.

    Using the European Banking Authority Risk Dashboard methodology, which includes loans and advances to central banks and credit institutions, the ratio dropped to 2.1 per cent in October, down from 2.3 per cent in September, confirming a consistent downward trend in credit quality.

    Merger Notification in Banking

    In a related development, the Cyprus Commission for the Protection of Competition announced it had received a merger notification concerning the acquisition of a portfolio of non-performing loans from Alpha Bank Cyprus Limited. Cerberus Capital Management L.P., through Delta Credit Purchaser Limited, is set to acquire this portfolio, prompting a review by the competition authority.

    Resilience in the Shipping Industry

    Despite ongoing operational challenges, Cyprus’s shipping sector is demonstrating resilience. Shipping Deputy Minister Marina Hadjimanolis addressed industry representatives at the 3rd CSN Cyprus Shipping Debate in Limassol, discussing the unique challenges and emerging opportunities for the maritime sector in 2026.

    Hadjimanolis highlighted that the sector stands at a pivotal point, where leveraging technology and innovation can foster a sustainable future.

    Environmental Progress

    On the environmental front, Cyprus has reported significant reductions in greenhouse gas emissions. Eurostat data indicated that the intensity of greenhouse gas emissions fell by 28.9 per cent between 2013 and 2024, showcasing the country’s progress in decoupling economic growth from emissions.

    At the EU level, emissions intensity declined by 34 per cent during the same period, with Cyprus among the countries demonstrating substantial progress.

    Reduction in Government Debt

    Cyprus has also achieved one of the largest reductions in government debt across the European Union, with the general government gross debt to GDP ratio decreasing by 6.1 percentage points in the third quarter of 2025 compared to the previous year. This marks the third-largest decrease within the EU.

    While the euro area’s debt-to-GDP ratio rose to 88.5 per cent, Cyprus’s decline is indicative of its strong fiscal management and economic stability.

    Bilateral Trade and Investment Momentum

    The upcoming Cyprus-India Business and Investment Summit, scheduled for January 28 in Mumbai, is generating significant interest, with registrations surpassing 400. This summit aims to strengthen bilateral trade ties and position Cyprus as a gateway for Indian companies targeting European markets.

    The event will showcase Cyprus’s appeal as an international business centre, leveraging its EU membership, stable legal environment, and competitive tax structure.

    Fiscal Performance of Cyprus

    According to Eurostat, Cyprus recorded a provisional general government surplus of 2.4 per cent of GDP in the third quarter of 2025, contrasting with the broader euro area, where the deficit rose to 3.2 per cent during the same period.

    This surplus, slightly down from 2.5 per cent in the previous quarter, reflects Cyprus’s strong fiscal position, having recorded notable surpluses in previous quarters.

    Support for Women-led Startups

    The Cyprus Chamber of Commerce and Industry (Keve) is facilitating the WE-RISE Open Call 2, aimed at empowering women-led deep-tech startups in the GreenTech, AgriTech, and ClimateTech sectors. This initiative, part of the Horizon Europe programme, seeks to support 20 women-led tech startups from the EU and associated countries.

    Upcoming Tax Reforms Presentation

    Lastly, Keve announced a presentation on Cyprus’s new tax reform, scheduled for March 6, 2026, in Athens. This session aims to inform the Greek business community about changes in the tax system that will become effective from January 1, 2026.

  • Cyprus Gears Up for Council of Europe Presidency Amid Business Developments

    Cyprus Gears Up for Council of Europe Presidency Amid Business Developments

    The focus on tourism in Cyprus intensifies as the Deputy Ministry of Tourism has initiated a tender for hotel accommodations in Nicosia. This move is aimed at preparing for the influx of delegates expected during Cyprus’ presidency of the Council of Europe, which will run from January to June 2026, featuring over 250 meetings across the island.

    The tender, recently published on the Electronic Procurement System, outlines an estimated cost of €165,000 excluding VAT for 32,896 overnight stays. If additional options are included, the total estimated expenditure could rise to €195,000. Bids for this accommodation are open until September 3, 2025, at 11 a.m. The announcement was confirmed by Deputy Minister for European Affairs Marilena Rauna at the Cyprus Hoteliers Association (Pasyxe) general assembly.

    In a separate but significant development, Israeli-owned BrainRocket, a major employer in Limassol, has decided not to relocate its operations to Spain after intervention from President Nikos Christodoulides. Earlier reports had indicated potential job losses, raising concerns among government and business officials. The company, which has been operating in Cyprus for approximately ten years and employs around 1,500 people, will transfer part of its workforce abroad while hiring an equal number of local staff.

    On the financial front, Eurobank has been actively engaging in share buybacks, acquiring 1,334,684 shares between August 11 and 14 for a total cost of €4.6 million. The bank confirmed that the repurchase aligns with its Share Repurchase Programme, initially approved during its Annual General Meeting on April 30, 2025.

    The National Bank of Greece also reported a significant share buyback, acquiring 300,000 shares between August 7 and August 14, with a total expenditure of €3.9 million. This transaction followed approvals from its annual general meeting and the European Central Bank’s Single Supervisory Mechanism.

    Additionally, the German Medical Institute (GMI) is at the forefront of a transformative healthcare project known as Agora 3.0, aimed at establishing Cyprus’s first fully digitalised hospital. Chief Scientist Demetris Skourides and Medical Director Professor Konstantinos Zamboglou outlined the initiative’s vision during a meeting in Limassol. The project includes the creation of an AI Department, which will serve as a centre for testing and developing AI technologies in medical diagnosis.

    Meanwhile, ASBISc Enterprises Plc has reported a remarkable increase in estimated consolidated revenues for July 2025, amounting to approximately $281 million—a 26% rise compared to July 2024. This growth highlights the ongoing resilience and expansion of the technology sector on the island.

    In the tourism sector, Cyprus continues to seek ways to extend its tourist season beyond the summer months. This strategy aims to boost revenue and stabilise employment in the industry, reflecting a broader trend as countries like Greece also plan to keep hotels operational throughout autumn and winter. TUI AG has confirmed plans to maintain extended operations in Greece and Turkey, responding to high demand.

    Lastly, the Cyprus Stock Exchange has announced the continued suspension of trading for ZREES Fraction Plc shares on the Emerging Companies Market, extending until October 27, 2025. This suspension is due to the company’s non-compliance with requirements regarding its nominated advisor and failure to submit financial reports.