By Stelios Orphanides
Bank of Cyprus, the island’s largest lender, has appointed Credit Suisse and HSBC as global coordinators and joint bookrunners for exploratory roadshows ahead of a subordinated tier 2 bond issue, Bloomberg reported on Wednesday.
Bank of America Merrill Lynch will be joint bookrunners at the roadshow that will be held in London on January 9, Bloomberg reported without citing its source.
The announcement comes two months after the lender’s chief executive John Hourican told shareholders at the annual general meeting that the bank was intending to issue tier 2 capital to strengthen its balance sheet.
“To that end, and as our bank normalizes, we are carefully exploring the possibility of introducing tier 2 capital to augment the strength of our balance sheet and supplement our equity capital base,” Hourican said on October 25.
The Cyprus Business Mail understands that appointments with investors are currently being arranged while the amount Bank of Cyprus will raise will depend on investor appetite.