Cyprus Popular Securities Repurchase Boosts Core Tier 1 Capital

Cyprus Popular Bank Pcl (CPB), the eastern Mediterranean island’s second biggest lender, boosted core Tier 1 capital by 115 million euros ($144 million) through the buyback of securities.

Of 450 million euros of floating rate lower tier 2 securities maturing in 2016, 76 percent were tendered after the bank offered to repurchase them, the Nicosia-based lender said in an e-mailed statement today. The move is part of a capital enhancing plan submitted to the Cyprus Central Bank on Jan. 20.

Cyprus Popular is preparing a 1.8 billion-euro rights offer, fully underwritten by the Cypriot government. The lender said its core Tier 1 capital ratio, a measure of financial strength, will reach 9.2 percent once it completes the capital raising plan.

To contact the reporter on this story: Stelios Orphanides in Nicosia at sorphanides@bloomberg.net

To contact the editor responsible for this story: Maria Petrakis at mpetrakis@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.