Tag Archives: Investment Grade Securities

UPDATE 1-Italy sees strong 15-year BTP bond orders in sales of new year debt | Instant News


(Adding details, quotes)

MILAN, Jan 5 (Reuters) – Italy gets strong orders for its first syndicated bond issue in 2021, taking advantage of a solid market for eurozone borrowers as investors bet on aid from the European Central Bank and the European Union Recovery Fund.

The Ministry of Finance will sell its new 15-year BTP bonds worth 10 billion euros ($ 12 billion), which received orders for more than 105 billion euros, the highest demand for a 15-year syndicated issue in Italy.

This is the latest syndicated debt sale by state issuers including Ireland and Slovenia on Tuesday.

Luca Falco, Head of UniCredit Capital Markets, said the demand was “very satisfying” especially considering the problem occurred in the first days of this year.

“We see strong demand not only from Italy and the UK, but also from France and Germany,” he said, noting continued interest in Italian government bonds.

A Treasury source told Reuters that the attractiveness of bonds with maturities of 15 years is increasing, with investors seeing them as a good alternative to the coveted traditional 10-year bonds.

The Ministry of Finance’s issuance of bonds in 2020 totaled nearly 551 billion euros and expectations for 2021 are roughly in line with last year.

Sovereign borrowing costs have hovered around record lows since late summer, after the European Union approved funds to help the bloc recover and the ECB continued its asset purchase program.

The Ministry of Finance has set the yield for the new issue, due March 1, 2037, at 8 basis points above the 1.45% March 2036 BTP bond yield, below the initial guidance of around 13 basis points.

A value of 10 billion euros will be issued at a re-offer price of 99.409, equivalent to a gross annual yield of 0.992%.

The 2036 BTP bonds are Italy’s current 15-year benchmark, which Rome sold last February in a syndicated sale, raising orders by more than 50 billion euros.

Barclays Bank Ireland PLC, HSBC Continental Europe, Morgan Stanley Europe SE, Société Générale Inv. Banking and UniCredit are the joint main managers on this issue.

Reporting by Sara Rossi and Valentina Consiglio; editing by Giulia Segreti, Larry King and Emelia Sithole-Matarise

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UPDATE 1-Italy sees strong 15-year BTP bond orders in sales of new year debt | Instant News


(Adding details, quotes)

MILAN, Jan 5 (Reuters) – Italy gets strong orders for its first syndicated bond issue in 2021, taking advantage of a solid market for eurozone borrowers as investors bet on aid from the European Central Bank and the European Union Recovery Fund.

The Ministry of Finance will sell its new 15-year BTP bonds worth 10 billion euros ($ 12 billion), which received orders for more than 105 billion euros, the highest demand for a 15-year syndicated issue in Italy.

This is the latest syndicated debt sale by state issuers including Ireland and Slovenia on Tuesday.

Luca Falco, Head of UniCredit Capital Markets, said the demand was “very satisfying” especially considering the problem occurred in the first days of this year.

“We see strong demand not only from Italy and the UK, but also from France and Germany,” he said, noting continued interest in Italian government bonds.

A Treasury source told Reuters that the attractiveness of bonds with maturities of 15 years is increasing, with investors seeing them as a good alternative to the coveted traditional 10-year bonds.

The Ministry of Finance’s issuance of bonds in 2020 totaled nearly 551 billion euros and expectations for 2021 are roughly in line with last year.

Sovereign borrowing costs have hovered around record lows since late summer, after the European Union approved funds to help the bloc recover and the ECB continued its asset purchase program.

The Ministry of Finance has set the yield for the new issue, due March 1, 2037, at 8 basis points above the 1.45% March 2036 BTP bond yield, below the initial guidance of around 13 basis points.

A value of 10 billion euros will be issued at a re-offer price of 99.409, equivalent to a gross annual yield of 0.992%.

The 2036 BTP bonds are Italy’s current 15-year benchmark, which Rome sold last February in a syndicated sale, raising orders by more than 50 billion euros.

Barclays Bank Ireland PLC, HSBC Continental Europe, Morgan Stanley Europe SE, Société Générale Inv. Banking and UniCredit are the joint main managers on this issue.

Reporting by Sara Rossi and Valentina Consiglio; editing by Giulia Segreti, Larry King and Emelia Sithole-Matarise

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Germany will issue bonds worth up to 471 billion euros by 2021 | Instant News


BERLIN, December 17 (Reuters) – Germany plans to issue federal bonds worth up to 471 billion euros ($ 576.27 billion) in an auction next year, its financial agency said on Thursday, as Europe’s largest economy spends unprecedented amounts to dampen it. fallout from the coronavirus pandemic.

“As in the current year (€ 406.5 billion), the relatively high volume of issuance was primarily a consequence of the Covid-19 pandemic, which had a major impact on Federal budget revenues and expenditures and funds in particular,” the agency finances added.

$ 1 = 0.8173 euros Report by Thomas Seythal Editing by Riham Alkousaa

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UPDATE 1-Brazil’s Vale negotiating funds for the Brumadinho disaster – source | Instant News


(Adding company comments)

SAO PAULO, December 9 (Reuters) – Iron ore miner Vale and Brazil’s Minas Gerais state government are negotiating a deal to settle claims for damages stemming from the 2019 Brumadinho dam disaster that involved injecting billions of reais into funds to be managed by the state government.

Talks on Wednesday will focus on the governance of the fund, and will be followed by another stage of negotiations focused on the value of a settlement, sources close to the talks told Reuters.

The company said in a statement that talks at the judicial conflict resolution center had reached “the relevant points” and that no figures had been discussed.

“Vale remains committed to building a global agreement with the Minas Gerais government and the judiciary involved in the mediation process,” he said.

It was agreed at the meeting that the company would extend emergency repair payments until January 31, 2021. The new meeting is expected to take place on December 17, said Vale.

About 270 people died in January last year when the tailings dam collapsed. (Reporting by Luciano Costa and Roberto Samora; Editing by Christian Plumb and Christopher Cushing)

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The UK will sell bonds worth 485.5 billion pounds in 2020/21 | Instant News


LONDON, November 25 (Reuters) – Britain will issue another 92 billion pound ($ 123 billion) worth of government bonds over the next four months, bringing the financial year total to a record 485.5 billion pounds, the UK Office of Debt Management said. on Wednesday.

The gross financing requirement for 2021/22 is likely to be 255.9 billion pounds, based on new spending estimates from finance minister Rishi Sunak, said the DMO.

$ 1 = 0.7491 pounds Reporting by David Milliken; Edited by Alistair Smout

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