Cyprus Popular Bank Public Co Ltd (the “Bank”) announces that the interest of the following issues of Capital Securities, in accordance with the terms of their issue, is payable every three months, on 31 March, 30 June, 30 September and 31 December every year.  

• Capital Securities 2008 (CPBCS), which bear an interest rate of 2,29% from 31 March to 29 June 2012.
• Capital Securities 2009 (CPBCB), which bear a fixed interest rate of 7%.
• Capital Securities 2010 (CPBCC), which bear a fixed interest rate of 7%.

For the payment of interest for the quarter ending 29 June 2012, the Bank, after consultation with the Central Bank of Cyprus and the European Commission through the Ministry of Finance, announces the payment of interest on June 30, 2012.

Beneficiaries of the interest, which will paid on June 30, 2012, will be the holders of the above mentioned Capital Securities who will be registered in the CSE Registry on June 27, 2012 (record date).  Therefore, the Capital Securities of the above issues will be trading in the CSE without the right of participation in the payment of interest from June 22, 2012.  

Following a relevant suggestion of the Cyprus Securities and Exchange Commission, it is clarified that the payment of interest for the above issues of capital securities, which concerns the three months ended March 30, 2012, and paid on March 31, 2012, was made in accordance with the terms of the securities, which determine that the payment of interest is in the absolute discretion of the Bank.

For the following quarters it is clarified that the payment of interest of the above Capital Securities issues is governed by the terms of the Decree for the Underwriting of the Rights Issue of the Cyprus Popular Bank Public Co Ltd (the “Decree”), which prohibits the payment of any interest on securities that are not compatible with the requirements of the Central Bank of Cyprus.  Therefore, the present payment of interest is expected to be the last for the time period the Decree will be in force.

Finally, the Bank announces for the following issue:

• Convertible Enhanced Capital Securities 2011 (“CECS” – Code CPBCD)

that, under the provisions of Term 5.3.5 of the Prospectus dated May 19, 2011, makes a Compulsory Interest Payment Cancellation for the period 31 March to 29 June 2012.  In accordance with the Terms of Issue of the CECS, the cancelled payment of interest is final and will no longer be payable by the Bank.