Cyprus issues 1 billion euros 10-year EMTN bond

Cyprus raised 1 billion euros to strengthen its liquidity and repay more expensive debts, less than three years after the near melt-down of its economy, Finance Minister Haris Georgiades said on Tuesday.

Finance Ministry sources said that record bids totaling over 2.8 billion euros were received when the tender opened in London on Tuesday morning, including offers for the exchange of older bonds.

The yield of the European Medium Term Note is 4.25, which is the low point of the range estimated by the Cypriot government, Georgiades said.

"It is the lowest yield ever for a Cyprus 10-year bond," Georgiades said in his Twitter account.

The Cypriot Finance Ministry had invited holders of three series of bonds to exchange them with new bonds. Bonds eligible for the exchange were the 4.75 percent notes due in 2019, the 4.625 percent notes and the 6.5 percent bonds both maturing in May, 2020.

This is the first time Cyprus has tapped international financial markets since it was accorded a 10 billion euro financial assistance program by the Eurogroup and the International Monetary Fund in a chaotic bailout in March, 2013.

It is also the first time it issued a 10-year bond since 2010.

Cyprus had been shut out of international markets since 2011 following a series of downward evaluations by international financial agencies because of the mismanagement of the public finances and the out of proportion expansion of the banking system.

The Cypriot banks were resolved as part of the 2013 bailout after they lost 4.5 billion euros when the Greek debt was devalued by about 73 percent in 2012.

Bank of Cyprus was forced to recapitalize by seizing 47.5 percent of deposits over 100,000 euros in the world's fist "bail-in and to take on its closest rival, which was wound down because of its extensive lending from the European Central Bank. Endit