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The addition of Cyprus and Slovenia to the NewEuroMTS market, dedicated to euro-denominated benchmark bonds issued by the “New EU States”, expands the number of States represented on the market to seven. The five other States are the Czech Republic, the Republic of Hungary, the Republic of Lithuania, the Republic of Poland and the Slovak Republic.
Bonds issued by the 10 new EU members with a minimum value of €500 million are eligible for trading on NewEuroMTS, provided that the bonds are supported by a minimum of eight market makers. This compares with a former listing requirement of €1 billion in respect of all bonds traded on NewEuroMTS.
As such, two Cypriot bonds, the €550 million 5.50%, due 2012 and the €500 million 4.375%, due 2014, and one Slovenian bond, the €500 million 6.00%, due 2010, will commence trading on NewEuroMTS later this month. Market makers that have agreed to lend liquidity include, for Slovenian bonds: ABN AMRO, Caboto, Calyon, CSFB, Dresdner, Fortis, HSBC-CCF, KBC and UBM; and for Cypriot bonds: ABN AMRO Deutsche Bank, Dresdner, Fortis, KBC, Merrill Lynch, UBM and UBS.
Christodoulos Christodoulou, Governor of the Central Bank of Cyprus, commented: “The listing of the two eligible bonds by the Republic of Cyprus on NewEuroMTS represents an important development which is designed to encourage international investment and further enhance our debt liquidity.”
Stanislava Zadravec, State Secretary and Head of Public Debt Management, Ministry of Finance, Republic of Slovenia, said: “Bonds listed on NewEuroMTS have experienced increased liquidity and tighter bid-offer spreads, key factors in terms of public debt management. We look forward to the Slovenian bond enjoying similar benefits and to the convergence of our market with other EU bond markets.”
Turnover on NewEuroMTS during the first five months of 2005 registered a 75% increase compared with volumes for the corresponding period in 2004.
