Interest Rates
The portfolio acquired and owned by Gordian Holdings Limited (“Gordian Holdings”) consists of, inter alia, terminated and non-terminated credit facilities, which were initially granted by:
(a) Bank of Cyprus Public Company Limited (“BoC”), which have been transferred to Gordian Holdings pursuant to the provisions of the Sale of Credit Facilities and other Related Matters Law of 2015 (L.169(I)/2015), as amended, and/or in accordance with the Scheme of Arrangement which has been ratified on 23/05/2019 by the Nicosia District Court and which became effective on 30/05/2019.
(b) Hellenic Bank Public Company Limited (“Hellenic”), which have been transferred to Gordian Holdings pursuant to the provisions of the Sale of Credit Facilities and other Related Matters Law of 2015 (L.169(Ι)/2015) as amended and/or in accordance with the Sale and Purchase Agreement dated 29/12/2021 and/or the Instrument of Transfer dated 06/05/2022.
For terminated credit facilities, the interest rate charged by Gordian Holdings is (i) the interest rate stated in the termination letter, which is in compliance with the relevant legislation and in line with the credit facility agreements signed by the borrower and/or the relevant parties and which has been communicated to the borrower / security provider / guarantor or, (ii) in case a judgement has been issued, the interest rate stated in the judgement.
For non-terminated credit facilities, the interest rate charged by Gordian Holdings is the interest rate specified in the credit facility agreement entered into between the original lender (BoC or Hellenic) and the borrower, taking into account any fluctuations in the interest rate agreed with and/or communicated to the borrower.
A brief summary of the methodologies applied by Bank of Cyprus and Hellenic Bank for the calculation of interest rates is outlined below.
Bank of Cyprus - Base Rates
The information presented below outlines a brief summary of the methodology applied for the calculation of interest rates as presented in the website of Bank of Cyprus on 03/09/2025 (https://www.bankofcyprus.com/en-gb/Personal/the-bank/other/bank-base-rates-definition/). For more detailed and updated, from time to time, information please refer to the Link set out above.
1. Calculation Methodology
Base rates are linked to the CBC benchmark rate (“CBC rate”), which reflects the average interest rate on euro-denominated household deposits in Cyprus (up to 2-year maturity).
In particular, the relevant base rates are calculating by adding a fixed spread (each percentage added shall be referred to as the “fixed spread”) on the CBC rate, as follows:
- Bank Base Rate (“BBR”) = CBC rate + 2.24%
- Bank Business Base Rate (“BBBR”) = CBC rate + 1.24%
- Bank Housing Base Rate (“BHBR”) = CBC rate + 0.49%
The BBR, BBBR and BHBR Rates (each referred to as the “benchmark rate”) are revised quarterly (15 March, June, September, and December).
Bank of Cyprus may also include the cost of Wholesale Funding into the calculation if deemed appropriate.
2. Inclusion of Wholesale Funding Cost (Effective 15/03/2023)
Bank of Cyprus includes the cost of its long-term wholesale debt in base rate calculations. The Formula applied (post-15/03/2023) is the following:
BBR = [Deposits × CBC rate + Wholesale Funding × Cost of Wholesale Funding] / [(Deposits + Wholesale Funding)] + Spread
3. Possible Future Methodology Changes
Bank of Cyprus reserves the right to change the benchmark rate (as defined above), adjust the fixed spread (as defined above) accordingly and / or to revise methodology due to regulatory, market, or index availability changes (regarding the benchmark rate).
Hellenic Bank – Base Rates
The information presented below outlines a brief summary of the methodology applied for the calculation of interest rates as presented in the website of Hellenic Bank on 03/09/2025 (https://www.hellenicbank.com/en/personal/base-rates).
Loans Granted Before 1 January 2008 (in Cyprus Pounds) were converted into euros on 1 January 2008. From that date, their Base Rate is linked to the European Central Bank (the “ECB”) main refinancing operations interest rate.
For other Credit Facilities (entered into on or after the 1 January 2008 and for credit facilities granted before 1 January 2008, other than loans granted in Cyprus pounds) the applicable base rate is linked to a specific index such as Euribor, ECB rates or deposit rates. Further information is presented below:
- The CBC Index is a monthly rate published by the Central Bank of Cyprus on euro household deposits (maturity up to 1 year).
- The reference Rate shall be calculated quarterly as the average of the CBC Index values since the last review.
The Hellenic Bank Base rates, which comprise of the “Reference Rate” (calculated as described above) plus a fixed spread (which differs depending on the type of the Base Rate) are revised quarterly (16 February, May, August, and November).
The Bank may at a future date:
- Include costs of new funding sources.
- Link Base Rates to a different benchmark/reference. In such case, the corresponding margin over the reference rate is expected to change accordingly.
- Adjust the methodology due to regulatory shifts, market changes, or Reference Rate index unavailability.
In all cases, the total interest rate charged and/or recovered by Gordian Holdings should not exceed the reference rate set by the Central Bank of Cyprus from time to time.
BoC
- BoC’s Base Rates Definition:
https://www.bankofcyprus.com/en-gb/Personal/the-bank/other/bank-base-rates-definition/
- BoC’s Lending Reference Rates & Calculation Methodology:
https://www.bankofcyprus.com/en-gb/Personal/the-bank/other/-/
- BoC’s Base Rates:
https://www.bankofcyprus.com/en-gb/Personal/the-bank/other/--/
Hellenic
- Hellenic’s Base Rates Calculation Methodology: and Base rates: