RESTRUCTURING of Bank of Cyprus’ loans to Leptos Group, one of Cyprus’ biggest building developers, has been completed successfully, the lender announced on Tuesday.
In a statement, the bank announced coming to an agreement with Armonia Estates Ltd, Pandora Investments Public Ltd, Leptos Calypso Hotels Public Ltd, and “certain of their respective subsidiaries”, all part of the Leptos Group, for the restructuring of the group’s loans.
“The agreement ushers in a new era in the business relationship between the two organisations that dates back to the early 1960s, and safeguards a strong and stable financial foundation for the Leptos Group, with benefits to both parties and the Cypriot economy,” the BoC said.
According to the statement, the key elements of the agreement include the restructuring of the terms of the group’s loans, through “the extension of their maturities, the strengthening of underlying collateral, and a modest release of certain security”.
Further, €100 million of existing loans of various companies of the Leptos Group were converted into €100 million of “long-term convertible loan notes issued by the Neapolis Smart Eco City holding company, with Bank of Cyprus being the noteholder”.
The restructuring agreement also includes a corporate and financial reorganisation of the Leptos Group that “aims to maximise its operational capabilities and enhance the financial strength of various entities within the Leptos Group”, the bank said.
As part of the deal, Pandora acquired equity in two land-owning subsidiaries of Calypso for €30 million, in the form of Pandora assuming an equal amount of Calypso’s loans with BoC, and the ownership structure of certain joint ventures owned by Armonia and Pandora was streamlined through the exchange of ownership stakes between them.
“The success of the Leptos Group, one of our largest clients, is important for us and through this agreement the bank demonstrates its willingness to continue to provide its support,” BoC CEO John Hourican said.
“The Leptos Group has demonstrated its agility, resilience and value creation during its long history, and especially in the recent challenging years, and we look forward to a closer, value-creating collaboration between the two Groups with the goal of capturing the upside potential arising from the Cyprus economy gaining further strength in 2016 and beyond.”
“Bank of Cyprus has been a strong supporter of the Leptos Group since its very beginning and has contributed to its evolution into one of the largest organisations in Cyprus,” executive chairman of the Leptos Group Michael Leptos said of the deal.
“This agreement demonstrates our joint willingness and commitment for the continuation and enhancement of this business relationship, with benefits for both parties and the overall Cyprus economy for many more years to come.”