Cyprus names managers for first post-bailout bond

Cyprus appointed lead managers on Tuesday to arrange its first post-bailout bond, underpinning its ambitions for a swift comeback to international markets just a year after teetering on the verge of bankruptcy.

The Finance Ministry said it had mandated Deutsche Bank, Goldman Sachs International, HSBC, UBS Investment Bank and VTB Capital to handle briefings for investors.

A euro-denominated transaction may follow, subject to market conditions, the ministry said.

Last week’s easing measures by the European Central Bank have given fresh impetus to a two-year eurozone debt rally that has driven borrowing costs in countries that were engulfed in the sovereign debt crisis to record lows.

A senior ministry source told Reuters that authorities were contemplating raising up to 500 million euros but that the final figure, timing and maturity of the issue would be made after consulting lead managers.

The source could not rule out an issue as early as this month.

“This should not in any way be interpreted as a premature termination of the [economic] adjustment program. We intend to continue that with the same determination,” the source said, referring to a fiscal consolidation program being monitored by the International Monetary Fund and European Union.

[Reuters]