Bank of Cyprus Says Ready for London Listing

Bank of Cyprus, the east Mediterranean island's largest lender, said on Tuesday it would apply for a listing on the London Stock Exchange as part of its restructuring drive.

"We are delighted to be applying for a listing on the London Stock Exchange, which marks another significant step in the bank's transformation," said BoC chairman Josef Ackermann in a statement.

"We believe that the bank, and its stakeholders, will benefit from the greater profile, liquidity and access to capital that a London listing offers."

Ackermann said the listing would enhance the group's ability to play a key role in supporting the Cyprus economy's growth.

The bank said it still intends to maintain a listing on the Cyprus exchange but will no longer be listed in Athens.

"The London listing is in line with the bank's long-term strategic commitment to list on a major European stock exchange," a BoC statement said.

"In order to facilitate this process, a new holding company has been incorporated in Ireland, which is intended to become the new holding company of the Group."

In the future, BoC hopes to become eligible for inclusion in the FTSE UK Index series.

In March 2013, Cyprus secured a 10-billion-euro loan from the European Union and International Monetary Fund to bail out its troubled economy and oversized banking system.

Under the deal, the government was required to close the island's second-largest bank, Laiki, and impose a 47.5 percent haircut on deposits above 100,000 euros at BoC.

The bank has since undergone major restructuring, which included absorbing the good assets of the former Laiki Bank and selling assets.

Also on Tuesday, BoC announced post-tax profits of 5 million euros in the third quarter of 2016 and 62 million euros for the nine months ending September 30.