Italy sells 5 bln euros of new floating rate bond, orders over 10.7 bln - lead



MILAN, March 23 (Reuters) - Italy raised 5 billion euros ($5.49 billion) from a new eight-year-long floating-rate bond launched on Wednesday, with final orders over 10.7 billion euros, a lead manager told Reuters.

In a busy week for euro zone debt issuance, Rome profited of relatively calmer markets after Russia's invasion of Ukraine started one month ago.

The European Union raised over 12 billion euros in a debt sale on Tuesday and Austria is on the market with a new 10-year note.

Federal Reserve chairman Jerome Powell said on Monday the U.S. central bank needed to move "expeditiously" to combat high inflation, pushing yields higher.

Italy has set the yield for the new issue maturing on Oct. 15, 2030 at 78 basis points over 6-month Euribor after initial guidance of around 80 bps, according to a memo seen by Reuters.

The reoffer price was set at 99.739%.

"Immediately after the invasion in Ukraine issuers stopped their activities but they cannot stop forever," UniCredit strategist Luca Cazzulani said.

"In addition given the 'hawkish' tone adopted recently by central banks there is the possibility that the longer you wait the more you risk rates rise again," he added.

The Treasury said on Tuesday it had given a mandate to BNP Paribas, Crédit Agricole, Intesa Sanpaolo and Mps Capital Services to manage the sale of the new bond.

The Economy ministry added that "the announcement of the bonds on offer in the medium-long term auctions scheduled for March 30, will take into account this transaction". ($1 = 0.9102 euros)
Reporting by Sara Rossi, Yoruk Bahceli; Editing by Toby Chopra and Maria Pia Quaglia

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.