Italy enters 50-year Bond club with €5bln sale

8 years ago - Published in Finance, Fundamental Analysis

Italy launched its first 50-year Bond on Tuesday. Like Spain, France and Belgium, in a statement, the Italian Finance Ministry said the bond would mature on March 1, 2067 and would be issued “in the near future”, as widely announced in recent weeks. The sale was arranged by Banca IMI, BNP Paribas, Goldman Sachs, HSBC France, JP Morgan Securities and Unicredit.

Italy joined other euro zone countries that have locked in historically low rates by selling ultra-long debt this year.

Italy sold €5 bln of the securities while about 18.5 billion euros of orders were placed for the bond, 5.5 times the expected sale amount. The yield was fixed at 52 basis points above the 30-year bond rate, which expires March 2017, and it should have a coupon of 2,85%, italian agency ANSA wrote in a note.

The Treasury has announced that the new bond will match nominal BTPs issued regularly: semi-annual coupons with a fixed annual rate defined at the time of the issue and redemption at par.