Italy Issues 18 Billion Euros in Dual-Tranche Bond Transaction, Gets Robust Demand -- Update

By Emese Bartha

Italy issued a total of 18 billion euros ($18.61 billion) in a dual-tranche government bond transaction on Wednesday, attracting very strong demand, said one of the joint bookrunner banks.

Italy sold 13 billion euros in a new August 2035-dated conventional bond, or BTP, with the orderbooks closing in excess of 142 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 7 basis points above the February 2035 BTP. The new bond has a 3.65% coupon and was priced at 99.577, at a yield of 3.733%, the same bank said.

Italy also sold 5 billion euros in a new April 2046-dated green BTP, with the orderbooks closing in excess of 127 billion euros, excluding joint lead manager interest, the same bank said. The spread on this bond was set at 5 basis points above the September 2043 BTP yield. The new bond has a 4.10% coupon and was priced at 99.465, at a yield of 4.181%.

January is the high season for syndicated issues in the eurozone as sovereigns kick off their annual funding programs. Syndicated transactions accompany scheduled auctions.

On Tuesday Belgium and Slovenia syndicated new bonds, while Portugal mandated banks for a new 10-year bond syndication.

Joint lead managers of the dual-tranche Italian issue were Banca Monte dei Paschi di Siena, BNP Paribas, Citi, Credit Agricole CIB, NatWest Markets and UniCredit.

Write to Emese Bartha at [e-mail]

(END) Dow Jones Newswires

01-08-25 1204ET