EBRD exits Bank of Cyprus with sale of remaining 5 per cent stake after decade of support

EBRD exits Bank of Cyprus with sale of remaining 5 per cent stake after decade of support

(IN BRIEF) The European Bank for Reconstruction and Development has sold its entire 5 per cent holding in the Bank of Cyprus, amounting to over 22.4 million shares, through an accelerated bookbuild on the Athens Stock Exchange. The EBRD first invested in the bank in 2014 to help restore stability following the financial crisis. Since then, the Bank of Cyprus has delivered a strong recovery, achieving a return on equity of around 20 per cent in recent years and reducing its non-performing loan ratio from 60 per cent to 2.5 per cent. The sale boosts share liquidity on ATHEX and reflects the bank’s successful transformation, supported by improved governance, renewed profitability, and a sustainable growth model.

(PRESS RELEASE) LONDON, 4-Sep-2025 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has completed the sale of its remaining stake of approximately 5 per cent in the Bank of Cyprus, the country’s largest financial institution. A total of 22,401,744 shares were sold to institutional investors via an accelerated bookbuild offering on the Athens Stock Exchange (ATHEX), further enhancing the liquidity of Bank of Cyprus shares following the lender’s relisting on ATHEX.

The EBRD became a shareholder in 2014 at a pivotal moment for Cyprus’s banking system, which had been severely affected by the global financial crisis and the eurozone downturn. Its investment was aimed at supporting the bank’s restructuring, recapitalisation, and return to financial stability. Since then, the Bank of Cyprus has made a remarkable turnaround: achieving average returns on equity of around 20 per cent in 2023 and 2024, and reducing its non-performing loan exposure ratio from around 60 per cent to just 2.5 per cent.

Kristina Zagar, Director of EU Banks and Structured Finance at the EBRD, said:
“We are proud to have supported the Bank of Cyprus in its transformation. Over the past decade, the bank has strengthened its credit processes, resumed lending to the real economy, and built a robust and sustainable business model. Improved governance and a clear strategic direction have been key drivers of this success. The bank’s relisting on ATHEX after leaving the London Stock Exchange underlines how far it has progressed in its journey.”

Between 2014 and 2020, the EBRD invested nearly €600 million in Cyprus, with a strong focus on restoring confidence and resilience in the financial sector. While the Bank concluded its formal mandate in Cyprus at the end of 2020, it continues to manage its legacy portfolio in the country. The successful exit from Bank of Cyprus marks the closing chapter of an investment that contributed significantly to stabilising the island’s financial system and positioning its largest bank for long-term growth.

Media Contact:

Email: media@ebrd.com

SOURCE: EBRD