Bank of Cyprus equity investment



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

23 Jul 2014



PSD disclosed:

23 Sep 2014

Translated version of this PSD: Greek

Project Description

As part of a €1 billion capital raise by Bank of Cyprus, the country’s largest financial institution, the EBRD Board of Directors approved an equity investment into newly issued ordinary voting shares of BoC, resulting in an EBRD stake in Bank of Cyprus of 5.021 per cent.

With this investment, the EBRD’s first in Cyprus, the Bank will support the stabilisation of operations and the implementation of the on-going restructuring plan of Bank of Cyprus.

Transition Impact

As the largest bank in the country, the performance Bank of Cyprus’ is highly correlated with economic activity in the country. The stabilisation and successful restructuring of the bank is critical for the full recovery of the country’s economy and the rest of the financial sector. As an active shareholder the EBRD will work towards improvements in corporate governance. This successful capital raise is a positive signal to the markets, providing investors with confidence.

The Client

Founded in 1899 as Nicosia Savings Bank and renamed in 1912, Bank of Cyprus is the largest financial institution in Cyprus. The bank provides a wide range of products and services, covering retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance.

EBRD Finance

Equity investment in Bank of Cyprus’s capital, resulting in an EBRD stake of 5.021 per cent.

Project Cost

€107.5 million

Environmental Impact

Categorised FI. Environmental and social (E and S) risk management capacity is limited, but Bank of Cyprus has assigned internal responsibilities for E and S risk management, confirmed its full commitment to complying with EBRD’s requirements and to building the internal E and S capacity to implement the necessary E and S procedures and policies in line with PR9. The information provided by the bank also confirms its overall compliance with PR2 requirements. Bank of Cyprus will be required to adhere to EBRD’s Environmental and Social Exclusion List and apply EBRD’s E and S Procedures for Corporate Loans to all their future lending operations from the time when the EBRD becomes a shareholder. EBRD’s online E and S risk management training will be offered to the bank's credit and risk management staff to further improve their internal capacity on E and S matters. Bank of Cyprus will be required to provide annual reports on environmental and social matters and on the implementation of PRs 2 and 9.

Technical Cooperation


Company Contact

Constantinos Pittalis

Manager, Investor Relations

Office Address: 51 Stasinou | 2002 Strovolos | Nicosia | Cyprus

Postal Address: P.O. Box 21472 | 1599 Nicosia | Cyprus

Tel: +357 22122466 | Fax: +357 22336258


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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