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Tapping the Capital Markets

In order to grow your business and manage liquidity, you need access to capital.  Capital can be provided in the form of bank lending but an alternative is by tapping  the capital markets and raising capital via the issue of debt or equity.
Capital markets transactions can be challenging and often encompass a number of issues, including matters of tax, legal, regulatory and financial reporting nature.

Cross-border transactions are becoming increasingly common and, by leveraging our global network of capital markets specialists, we can maximise value and provide guidance before, during and after your transaction.

 Success story - Gunvor Group Ltd

Gunvor Group provides integrated trading products and logistics services for participants in the worldwide oil and energy markets. The Group's main trading offices are located in Geneva, Singapore, Nassau and Dubai, with a network of representative offices around the globe. Gunvor Group is one of the world’s largest independent commodity trading companies by turnover. The Group's parent company Gunvor Group Ltd (the "Company") is registered in Cyprus, taking advantage of the tax, regulatory, legal and other benefits that Cyprus has to offer as an international business centre.

In May 2013, the Company has successfully priced a US$500m bond, up from an initial target of about US$300m, as a part of its strategy to diversify and strengthen its financial foundation and long-term capital structure. The Company seeks to expand its business beyond trading, into assets such as refineries, thermal coal mines and oilfields.

This was the Company's first-ever international bond offering, which was reported by the Financial Times to have been significantly oversubscribed.  Strong demand for the offering came from both retail and institutional investors, resulting in a final order book of over US$2.75bn. The instrument has a five-year tenor with a maturity date of 2018, and a 5.875% coupon. The bonds were listed on the Singapore Stock Exchange; this was probably the first-ever cross border offering into a major Asian Stock Exchange involving a Cyprus issuer.

The recent, successful example of Gunvor Group Ltd, is an important vote of confidence for Cyprus as a listing jurisdiction in such high-profile and substantial cross border transactions, despite the recent adverse developments as regards the Cypriot economy.

IPO Watch Europe

The report findings demonstrate that the professional services sector has become the main driver of jobs and growth in Cyprus, especially during the economic crisis. During the past five years, international services (professional services and international financial services) grew 40 times faster than tourism and created considerably more jobs. The research notes that professional services do not compete with other sectors of the economy but rather complement and support their development.

Contact us

Socrates Paschalis

Director, Advisory

Tel: +357-22555769

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