Bank of Cyprus will discover whether investors have bought into its recovery story as it offers its first public bond since imposing losses on bondholders in 2013 during the Cypriot banking crisis, Reuters reported. The bank began marketing a 200m minimum 10-year non-call five-year Tier 2 bond at 9.5% area on Thursday morning via Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and HSBC. The transaction is expected to be rated Caa3 by Moody's. Bank of Cyprus is rated Caa2 by Moody's and B- by Fitch. Investors suffered heavy losses during the Cypriot banking crisis, but the lender last week repaid in full its 11.4bn Emergency Liquidity Assistance in what it described as a "significant milestone" in its journey back to strength. "It's probably one for the brave," said a portfolio manager. "9.5% is quite massive but Bank of Cyprus is only trying to raise a small amount. Also, they paid back the ELA last week and are probably in better shape than other lenders in Europe." Despite its chequered past, leads reckon there is now appetite for the credit, which must issue debt to comply with European rules known as Minimum Requirement for Own Funds and Eligible Liabilities. Read more.