CYPRUS POPULAR BANK PUBLIC CO LTD
ISSUE OF CAPITAL SECURITIES
The Board of Directors of Marfin Popular Bank Public Co Ltd (the "Bank") during its meeting on 17.03.2008 approved the issue of Capital Securities which will be included in its Hybrid Tier I Capital up to the amount of EUR 200 million. The rights and claims of the Capital Securities' holders will be subordinated and will be of secondary priority compared to claims by creditors including the Bank depositors, but will have priority over the Bank's shareholders.
The Capital Securities issued will not have a maturity date but may, at the Bank's discretion, after approval by the Central Bank of Cyprus, be acquired in their entirety at their nominal value, together with any accrued interest, five years after date of issue or on any interest payment date after that.
Capital Securities will have a 6,5% fixed interest rate for the first two quarters and subsequently a floating rate which will be reviewed on a quarterly basis. The interest rate will be equal to the Euribor 3-month rate (which is currently 4,65%) at the beginning of each quarter plus 1,5%, and interest will be payable every three months.
Capital Securities up to EUR 100 mil. will be initially offered to a limited group of individuals, professional investors and individuals who will invest at least EUR 50,000 each. A relevant Confidential Information Memorandum will be submitted to the Securities & Exchange Commission.
At a second stage the Securities will be offered to the public through a Public Offer.
The issuing terms are subject to a prior approval from the Central Bank of Cyprus.
Finally, the Bank intends to apply for the listing of the Capital Securities at the Cyprus Stock Exchange.
At the same time, the Bank's Board of Directors decided to repay in full the Capital Securities LGCS in their entirety at their nominal value, amounting at CYP 50 mil. (EUR 85 mil.). The repayment is subject to the approval of the Central Bank of Cyprus.
The Capital Securities issued will contribute to the further enhancement of the capital base of Marfin Popular Bank Group.
The Capital Securities issued will not have a maturity date but may, at the Bank's discretion, after approval by the Central Bank of Cyprus, be acquired in their entirety at their nominal value, together with any accrued interest, five years after date of issue or on any interest payment date after that.
Capital Securities will have a 6,5% fixed interest rate for the first two quarters and subsequently a floating rate which will be reviewed on a quarterly basis. The interest rate will be equal to the Euribor 3-month rate (which is currently 4,65%) at the beginning of each quarter plus 1,5%, and interest will be payable every three months.
Capital Securities up to EUR 100 mil. will be initially offered to a limited group of individuals, professional investors and individuals who will invest at least EUR 50,000 each. A relevant Confidential Information Memorandum will be submitted to the Securities & Exchange Commission.
At a second stage the Securities will be offered to the public through a Public Offer.
The issuing terms are subject to a prior approval from the Central Bank of Cyprus.
Finally, the Bank intends to apply for the listing of the Capital Securities at the Cyprus Stock Exchange.
At the same time, the Bank's Board of Directors decided to repay in full the Capital Securities LGCS in their entirety at their nominal value, amounting at CYP 50 mil. (EUR 85 mil.). The repayment is subject to the approval of the Central Bank of Cyprus.
The Capital Securities issued will contribute to the further enhancement of the capital base of Marfin Popular Bank Group.