Global Capital, a London-based firm specializing in international capital markets, has distinguished the Republic of Cyprus's €1 billion sustainable bond as the leading green/social bond issued by a public sector entity in 2023. In their annual "Review 2023/ Outlook 2024" report, Global Capital highlighted this Cypriot sustainable bond as the "SSA (Sovereign-Supranational-Agency) ESG (Environmental/Social/Governance) Bond of the Year 2023."

"Few bond issues generate as much interest as a country's first ESG issue, and Cyprus stole the show in this area in 2023," remarked Global Capital. They noted that Cyprus, a BBB-rated issuer, made its much-anticipated first foray into the ESG bond market in April.

Global Capital pointed out that despite concurrent syndicated issues from Italy and Greece, and sustainable bond releases from Luxembourg and Slovenia during the same period, Cyprus’s 10-year bond issue stood out as a resounding success. They emphasized that the order book for this bond was the largest secured since Cyprus re-entered international capital markets in 2014, and the issue was priced at its estimated fair value, exceeding expectations.

The strategic planning and ambition displayed by Cyprus in the ESG sector was particularly impressive. "Despite the limited ESG-related needs compared to larger issuers, Cyprus intends to maintain a steady presence by issuing an ESG bond every 2 or 3 years. There could not have been a better way for Cyprus to embark on this journey than with this remarkable first issue," the report stated.