What can private equity do for Cyprus

Private equity and foreign investment may hold the key to the future of the Cypriot market, just as it did with Malta a decade ago, says our Cyprus legal team.

Constantinos Herodotou, the Cyprus government’s newly-appointed Commissioner of Privatisations, made a very interesting remark during an informative panel event that took place last week in Nicosia.

Mr. Herodotou, being the person entrusted to lead the Unit that will manage the privatisation of the island’s semi-government organisations - Cyprus Telecommunications Authority (Cyta), the Electricity Authority of Cyprus (EAC) and the Cyprus Ports Authority (CPA) – positioned these privatisations as trade sales to private equity investors and foreign investors.

Organised by ICAEW's Corporate Finance Faculty and KPMG, the panel event featured insights from Cypriot policy makers, ICAEW and KPMG, focussing on private equity and what it can do for Cyprus.

Key discussions included: 

  • Current global trends
  • What the major PE houses seek to invest in, and the conditions and funding options available
  • Latest developments and opportunities in project finance in Cyprus, including major projects that are being addressed and the role of private equity in these projects

TMF Group Cyprus was represented by myself and Alex Hooft van Huysduynen, Managing Director.

Marios Demetriades, the Minister of Communications and Works, stated that if we successfully conclude this series of privatisations, we can anticipate further Foreign Direct Investments (FDI) in Cyprus, as shown over the past decade in nearby Malta. When Cyprus liberalises and regulates its market, it will be much easier for private equity investors and foreign investors to enter Cyprus.

Although several important challenges still lie ahead of us, the opportunities are here to seize and the time for making progress is now. Cyprus remains an attractive place for investment.

Read more about doing business in Cyprus.

 
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