NICOSIA: Cyprus said Wednesday it had raised 100 million euros ($1.39 million) through a private bond placement, its first foray into the markets in three years.
The operation comes only 13 months after the cash-strapped island was forced to accept a 10-billion euro bailout from a trio of international lenders to shore up its economy and banking system.
The six-year paper, carrying a coupon of 6.5 percent, will be listed on the London Stock Exchange.
The finance ministry said the operation showed the "gradual rebuilding of confidence in the... economy which, in turn, is a result of the (government's) stronger-than-expected performance and full compliance" with the terms of the bailout.
It said the money will be used for public debt management, including government financing, "always in compliance with Cyprus' economic adjustment programme."
It added that it will continue assessing market conditions and options as "part of the broader strategy aiming towards the full restoration of market access."
In May 2011, after a succession of rating downgrades over its failing banks and heavily indebted economy, Cyprus was effectively shut out of international markets.
Last week, Standard & Poor's upgraded Cyprus's credit rating by one notch to B due to a better-than-expected performance of the recession-hit economy.
It also said Nicosia had stuck to a tough adjustment programme as outlined by international lenders.
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