(Alliance News) - Poste Italiane has returned to the bond market after four years, entrusting a group of investment banks with the mandate for a senior fixed-rate issue with an average maturity of 5 years, intended for institutional investors.
As reported by Il Sole 24 Ore on Wednesday, the last similar transaction dates back to December 2020, when the company placed two tranches of 4 and 8 years for a total of EUR1 billion, with demand five times the offer.
The decision comes on the heels of Moody's upgrade of Poste Italiane's rating, which on Monday raised its rating to 'Baa2' from 'Baa3' following the positive review of the Italian Republic.
The group led by Matteo Del Fante now aims to take advantage of the favorable market conditions to diversify its sources of financing, optimize its debt structure, and replenish its liquidity, even after recent acquisitions such as the takeover of TIM.
BNP Paribas, Citi, Deutsche Bank, IMI-Intesa Sanpaolo, Morgan Stanley, and UniCredit are participating in the transaction. Previous issues were also made in 2021, with a EUR800 million perpetual hybrid bond that attracted orders of over EUR3 billion, about four times the offer, mainly from investors in France, Italy, Germany, and the UK.
Interest in Italian corporate debt has remained high, as demonstrated by recent issues by Cdp and Enel, which recorded demand well above expectations. It is therefore likely that Poste Italiane's new placement will also attract strong interest, with an amount expected to be around €1 billion.
The group will have to announce the tranches, maturities, and yield offered. The debt-to-equity ratio is currently 0.2, a very different picture from that of 2020, when the four-year tranche was issued with a negative yield of minus 0.025%, before the turnaround in rates that began in 2022.
By Antonio Di Giorgio, Alliance News reporter
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