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  • 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 shipping — Cyprus Shipping: Bridging the Real Economy with Innovative Financing

    Cyprus shipping — Cyprus Shipping: Bridging the Real Economy with Innovative Financing

    cyprus shipping — Cyprus shipping is emerging as a vital nexus where the real economy intersects with innovative financing solutions. With alternative credit becoming one of the fastest-growing segments in the European funds industry, Cyprus is uniquely poised to benefit due to its robust fund framework and status as a prominent ship management centre.

    Photo: financialmirror.com

    The International Monetary Fund (IMF) estimates the global private credit market is now over $2.1 trillion, highlighting the significant appeal for investors looking to connect capital to tangible economic activities through flexible financing tools. This growing interest is reflected in two upcoming major events in Cyprus: Maritime Cyprus 2025, scheduled for October 6-8, and the International Funds Summit in Limassol on November 3.

    Cyprus shipping: Emerging Trends in Private Credit

    Private credit has rapidly expanded in Europe, particularly as banks have scaled back certain lending activities due to regulatory constraints. The European Central Bank acknowledges that private markets are now a vital complement to traditional bank lending within the euro area. This shift is further propelled by easing monetary policies; euro area rates are moderating, resulting in a lower cost of capital for borrowers. Concurrently, the U.S. Federal Reserve has also cut rates, hinting at potential further reductions in 2025, which could influence international investor appetites.

    Cyprus: A Unique Position

    Cyprus stands out in the maritime finance landscape, combining its strengths as a recognised EU fund centre with a leading role in global ship management—accounting for approximately 20% of all third-party ship management globally. This dual identity fosters natural synergies, creating an ideal environment for exploring innovative financing strategies that intersect with the shipping sector.

    Shipping is an inherently capital-intensive industry, reliant on financing for vessels, retrofits, and working capital. Traditionally, banks and export credit agencies have played pivotal roles in providing this funding. However, their influence has waned, giving rise to alternative financing structures like leasing, sale-and-leaseback arrangements, and asset-backed financing. Such solutions offer flexible terms and connect investor capital to real assets, which is increasingly attractive to investors.

    Attraction of Maritime Credit

    For investors, maritime credit presents a unique opportunity to gain exposure to the shipping industry without being directly affected by market fluctuations. Unlike equity investments that are susceptible to the volatility of freight rates and asset values, credit structures focus on contractual cash flows and predictable returns. This stability is particularly appealing to non-shipping investors seeking diversification from the unpredictable nature of shipping equities.

    Risks in the Expanding Landscape

    While the growth of private credit presents significant opportunities, it also introduces certain risks. The European Central Bank has raised concerns regarding issues such as valuation opacity, leverage, and liquidity mismatches within this expanding market. Moreover, geopolitical factors can complicate the landscape. For instance, the U.S. Trade Representative’s recent Section 301 action will implement new port-entry service fees for vessels with Chinese ownership, operation, or built connections, starting in October 2025. Such measures create uncertainties for ships financed through Chinese leasing structures, underscoring the importance of diversified funding sources.

    A Strategic Moment for Cyprus

    The rise of alternative credit is actively reshaping Europe’s funds industry. Shipping, with its tangible assets and global relevance, exemplifies how real-economy sectors can harmonise with innovative financing strategies. As Maritime Cyprus 2025 and the Funds Summit approach, Cyprus has a timely opportunity to leverage its dual strengths as both a fund jurisdiction and a maritime hub. The next chapter in Europe’s funds industry will depend on how effectively managers can link innovative financing with the needs of the real economy. With its maritime heritage and robust fund architecture, Cyprus is well-positioned to anchor this wave of change.