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BoC shareholders urged to use fix term deposits to buy stock

August 8, 2014

By Staff Reporter

CURRENT Bank of Cyprus shareholders can use their fix term deposits to buy shares of the bank as part of the share capital increase programme underway, the lender said.

Following an amendment on July 31 of last year's bail-in order, shareholders may terminate a fixed term deposit created by virtue of the decree, prior to its maturity and use the funds to buy shares in the bank as part of the three-tier capital increase announced on July 30, the bank said.

At the end of July, the bank announced a successful private placement of 4.17bn new ordinary shares at 24c each in order to raise 1bn from local and foreign funds. US-based investor William Ross heads a group that have pledged 400m, while the European Bank for Reconstruction and Development (EBRD) is pumping in a further 120m.

The lender said that it will now proceed with phase 2 of the capital raising, consisting of an open offer to existing shareholders allowing them to subscribe until August 21 for up to 20% in aggregate of the total number of shares offered to qualified investors in the first phase and at the same price as the placing price with the right to bid for a minimum 100,000.

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Source: Cyprus Mail

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