Home > News > world > Italy raises record $25 bn from sale of retail bonds
Pedestrians, wearing protective face masks, walk in view of the Pantheon in Rome (Bloomberg)
Pedestrians, wearing protective face masks, walk in view of the Pantheon in Rome (Bloomberg)

Italy raises record $25 bn from sale of retail bonds

  • It’s the second time as many months that orders for an Italian bond sale were sizable
  • With the European Central Bank backstopping the euro zone’s securities, demand for the nation’s debt is high, even after Italy boosted supply to help fund its economic relief programs

A bond sale that amounted to a vote on Rome’s handling of the economic crisis has been a success, raising the most on record.

The four-day auction of inflation-linked bonds aimed primarily at the retail market ended Thursday, with the nation allocating 22.3 billion euros ($25 billion) worth of securities, according to a person familiar with the matter, who declined to be identified because they aren’t authorized to speak publicly about the deal.

The nation received about 14 billion euros in orders from retail investors, and more than 19 billion euros from institutional investors, of which it accepted a little over 40%. The five-year notes, intended for “Covid-19 emergency," will have a final coupon of 1.4%.

It’s the second time as many months that orders for an Italian bond sale were sizable. With the European Central Bank backstopping the euro zone’s securities, demand for the nation’s debt is high, even after Italy boosted supply to help fund its economic relief programs.

Retail offerings aren’t always successful, as evinced by a November 2018 issue, which saw domestic investors give a resounding thumbs-down to the new coalition government’s funding efforts. Meanwhile, a similar sale in October raised almost seven billion euros.

The yield on Italy’s five-year securities rose two basis points to 1.10%.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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