Italy Issues 17 Billion Euros in Dual-Tranche Syndicated Transaction -- Update

By Emese Bartha

Italy issued 17 billion euros ($19.33 billion) in a dual-tranche syndicated government bond transaction on Wednesday, one of the lead manager banks said.

The transaction included the launch of a new October 2030-dated government bond, or BTP, in which Italy placed 12 billion euros, the same bank said. Books for this leg of the deal closed in excess of 120 billion euros, including 5.3 billion euros in joint lead manager interest.

The spread on this bond was set at 8 basis points above the yield of the 2.95% July 2030 BTP. The new October 2030 BTP has a 2.70% coupon, and it was priced at 99.761, equivalent to a 2.768% gross annual yield, Italy's Ministry of Economy and Finance said.

The other leg of the transaction was a 5 billion-euro tap of the 4.05% October 2037 green BTP, which attracted more than 90 billion euros in demand, the ministry said. This book size is slightly smaller than the one indicated by banks at book close.

The spread on this tap was set at 6 basis points above the yield of the 0.95% March 2037 BTP. The bond was priced at 103.866, implying a yield of 3.692%, the ministry said.

Joint lead managers of the transaction were Banco Santander SA, Barclays Bank Ireland PLC, BNP Paribas, BofA Securities Europe S.A., Credit Agricole Corp. Inv. Bank and Societe Generale Inv. Banking.

Write to Emese Bartha at [e-mail]

(END) Dow Jones Newswires

06-04-25 1335ET