By Stelios Orphanides
Cyprus asked Barclays, HSBC, Morgan Stanley and Societe Generale Corporate and Investment Banking to facilitate communication with investors in Europe in meetings or via teleconferences as of December 9, the finance ministry said.
“The republic aims at informing investors about recent developments and discuss the financing strategy,” the finance ministry said in an emailed statement today.
A finance ministry official with knowledge of the situation said on condition of anonymity that Cyprus wants “to see what investors would like to see in a future debt issue,” which may happen at the beginning of 2015.
On November 13, finance minister Harris Georgiades said that the government would test international markets without specifying any amount, adding that the key parameters will be determined at the time depending on market conditions. Cyprus successfully issued 750 million euros in new debt at a 4.75 per cent average yield in June, after it remained shut out of markets since May 2011. In May this year, the government borrowed 100 million euros at an interest rate of 6.5 per cent via private placement.
Cyprus saw its sovereign rating upgraded in recent weeks by Fitch Ratings to B-, Standard and Poor’s to B+ and Moody’s to B3.