Cypriot capital markets to benefit from EMTN dual-listing

The Finance Ministry, in collaboration with SIX, a financial market infrastructure company, and the Cyprus Stock Exchange (CSE), on Thursday announced the successful activation, referred to as going live, of the dual-listing of Euro Medium Term Notes (EMTN) of the Republic of Cyprus at the Cyprus Stock Exchange.

According to an announcement by the CSE, the first trading day in the EMTN officially commenced on March 27, 2024.

Spearheading this initiative, SIX has engineered a post-trade solution that fortifies the Cyprus Stock Exchange’s role as the Central Securities Depository, ensuring the provision of safekeeping, settlement, and asset servicing for the Euro Medium Term Notes of the Republic of Cyprus.

The announcement stated that “this partnership will enhance liquidity for the Republic of Cyprus’ funding vehicles, accelerate the growth of the Cypriot capital markets and capture long-term joint value for both Cyprus Stock Exchange and SIX”.

Finance Minister Makis Keravnos said that “the ‘Go Live’ of the dual-listing of the EMTN of the Republic of Cyprus at the Cyprus Stock Exchange reaffirms the Cypriot government’s determination to facilitate access for the Cypriot investors to invest and trade in the Republic’s international bond issuances thus expanding the investor base and enhancing the liquidity for the Republic’s funding vehicles”.

“At the same time, the dual listing of the Republic’s international bond issuances at the Cyprus Stock Exchange signifies an important improvement of the effectiveness of the public debt management,” he added.

Marcus Harreus, Managing Director of SIX SIS, said that the company is “delighted to announce together with the Ministry of Finance and the Cyprus Stock Exchange the “Go Live” of a significant infrastructure project, the dual-listing of the EMTN of the Republic of Cyprus at the Cyprus Stock Exchange”.

Harreus explained that this partnership with the Cyprus Stock Exchange and the individualised solution the company designed and implemented for the CSE mark a significant step forward in strengthening the presence of SIX in Cyprus and increasing SIX’s visibility in the region.

“Given SIX’s strong position in the global post-trade value chain, its global footprint and expertise, scale, multiplicity of connectivity patterns, enhanced servicing model, and innovative solutions, we trust that the partnership will increase Cyprus Stock Exchange’s functionality, efficiencies and investor access,” Harreus said.

“We look forward to continuing working with the Cyprus Stock Exchange towards expanding its market coverage, products, services and innovation potential, to further our joint vision of trust and innovation and capture long-term joint value. We believe that this partnership will increase our joint growth perspectives and support the Cyprus Stock Exchange’s position as a solid infrastructure in the region,” he added.

Moreover, Marinos Christodoulides, Chairman of the Board of the Cyprus Stock Exchange, welcomed the ‘Go Live’ of the dual-listing of the Republic of Cyprus’ international bond issuances at the Cyprus Stock Exchange in collaboration with SIX.

“This is an important first step of our strategy towards an optimal reshaping to achieve scale and business expansion by establishing new business streams in order to diversify and enrich the Cyprus Stock Exchange’s business model,” Christodoulides said.

“The establishment of an Investor CSD infrastructure represents a milestone of our strategy and our ability to serve domestic and foreign financial assets of our clients,” he added.

Furthermore, the CSE chairman said that the exchange’s partnership with SIX “comes at a pivotal time of transformation in the Cypriot capital markets and is a testament to Cyprus Stock Exchange’s ongoing commitment and efforts to increasing the market’s liquidity and enhancing the solidity of the local infrastructure“.

“We consider the establishment of a long-term partnership with SIX, a reliable partner, and the benefits from its global reach and innovation credibility as a solid fundament for Cyprus Stock Exchange’s development towards becoming a relevant regional hub,” Christodoulides concluded.