Cyprus raises 1.1 billion USD by issuing seven-year bond

Cyprus said that it raised 1 billion euros (1.1 billion U.S. dollars) from the international market by issuing a bond maturing after seven years.

The Ministry of Finance said the bond was bought by investors based in the United States and Europe at an interest of 3.8 percent, below the target of 4 percent set when a book of bids was opened in the morning.

The ministry said after international financial markets closed, offers received amounted to 2.6 billion euros.

The amount raised is equal to about 15.4 percent of Cyprus's current budget or 5 percent of its annual GDP.

It is the first time that Cyprus get financing from the international market after it exited a three-year economic adjustment program under a 10 billion-euro package of financial assistance which was offered by the Eurogroup and the International Monetary Fund in March, 2013.

Last time when Cyprus turned to the international market for financing, it was before the end of its adjustment program in October 2015. At that time, it raised 1 billion euros for a 10-year maturity bond at an interest of 4.35 percent.

The Ministry of Finance said it was satisfied with the result, given the fact that international rating agencies say Cyprus has not yet reached a financial market stage.

It said consultants for the issue were Barclays, JP Morgan, Morgan Stanley, Societe Generale and VTB.

Cyprus had been shut out of the international market since mid-2011, when its economy entered a recession which lasted 12 consecutive quarters. (1 euro =1.1 U.S. dollars)