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- EBRD sells its c. 5 per cent stake in Bank of Cyprus
- Shares sold in an accelerated bookbuild offering on the Athens Stock Exchange
- Since EBRD’s investment in 2014, Bank of Cyprus has returned to strong profitability and reduced non-performing loan exposure
The European Bank for Reconstruction and Development (EBRD) has sold all of its 5 per cent stake in the Bank of Cyprus, the country’s largest lender. The 22,401,744 shares were offered through an accelerated bookbuild offering to institutional investors on the Athens Stock Exchange (ATHEX).
The EBRD first invested in the Bank of Cyprus in 2014 to support its restructuring and stabilisation in the wake of the global financial crisis and the eurozone downturn. The lender has since returned to profitability – averaging around 20 per cent return on equity over 2023-2024 – and reduced its non-performing loan exposure ratio from around 60 per cent to just 2.5 per cent.
The EBRD’s stake sale will help to increase the liquidity of Bank of Cyprus shares on ATHEX.
The EBRD’s Director of EU Banks and Structured Finance, Kristina Zagar, said: “We are proud to have supported the Bank of Cyprus in its transformation journey. Since our investment, the bank has successfully strengthened its credit processes and revived lending to the real economy. It has evolved into a resilient and robust business on the back of improved governance, clear strategic vision and consistent delivery on developing a future-ready and sustainable business model. Its recent relisting on ATHEX, following its London delisting, shows the bank has come full circle in its transformation.”
The EBRD invested around €600 million in Cyprus in 2014-20, primarily to support financial sector recovery after the crisis. The EBRD concluded its mandate in Cyprus at the end of 2020 but continues to manage its portfolio in the country.