Tag Archives: Terms and conditions

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


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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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UPDATE 1-Italy to sell new dollar-denominated bonds this year | Instant News


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ROME, Oct 20 (Reuters) – Italy will issue new global dollar-denominated bonds this year and will likely focus sales at one or two maturities, the Treasury Department’s debt chief said on Tuesday.

“We closed the authorization process with the Stock Exchange Commission,” said Davide Iacovoni, adding the matter would be “in the coming weeks, at the end of the year”.

Last year Italy, the world’s third-largest public debtor, raised $ 7 billion in its first US dollar bonds in nearly a decade, diversifying its sources of funding.

Rome will borrow about half a trillion euros this year to help contain the pandemic and aims to gradually double the number of Italian government bonds held by small retail investors.

The Ministry of Finance, which manages debt worth more than 2.4 trillion euros, is also finalizing the framework for the next green bond issuance, but has yet to decide whether this will happen this year or in early 2021.

The green bonds will be offered to institutional investors but Rome is considering opening them up to retail clients as well.

The next sale of BTP Futura – a debt instrument dedicated to retail investors which was first launched this year – will take place between November 9-13, Iacovoni said.

The bonds have a term of 8 years and will pay the same premium as the last issue in July.

Problems in the coming months will fall by more than 30% compared to the same period last year as the Ministry of Finance can count on liquidity of nearly 84 billion euros at the end of September, nearly double from 44.7 billion euros in the same period in 2019.

“This will allow us to reduce the number of problems compared to what we did last year. The debt structure remains unchanged, and protects us from the risk of refinancing, “said Iacovoni. (Reporting by Stefano Bernabei and Antonella Cinelli, written by Agnieszka Flak and Giulia Segreti, Editing by Angus MacSwan)

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UPDATE 1-Germany will launch its 2nd green bond in November with a five-year term – source | Instant News


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BERLIN, Sept 24 (Reuters) – Germany plans to issue its second green bond in November with a five-year maturity as part of its effort to establish a yield curve for its booming sustainable financial market, two people with knowledge of its debt plans said. Reuters on Thursday.

Finance Minister Olaf Scholz hopes the auction will raise up to 5 billion euros in funds, said the two people, who spoke on condition of anonymity.

The finance ministry declined to comment and pointed to the debt agency, which is scheduled to publish its issuance plans for the fourth quarter on Monday.

Germany has seen good demand for its first green bonds, issued in early September, seen as a key moment for climate-focused European finance drivers.

Germany raised 6.5 billion euros in 10-year bonds, after receiving orders from investors for more than 33 billion euros.

German officials have described the first green bond auction as an important step towards strengthening Germany as a location for sustainable finance.

Germany hopes to issue bonds with different maturities to build a yield curve that other countries and companies looking to sell their green bonds can use as a reference point.

The German program also includes a unique feature in which investors will be able to swap green bonds for identical conventional bonds, which will hopefully help reduce liquidity problems.

Germany plans to borrow up to 218 billion euros this year, and 96 billion euros by 2021, after temporarily suspending its constitutionally enshrined debt brake to help fund the crisis response to the coronavirus pandemic.

Reporting by Michael Nienaber and Rene Wagner Editing by Paul Carrel and Catherine Evans

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Germany will launch its 2nd green bond in November with a term of 5 years – source | Instant News


BERLIN, Sept 24 (Reuters) – Germany plans to issue its second green bond in November with a 5-year term as part of an effort to establish a yield curve in a booming sustainable financial market, two people are familiar with the debt plan. told Reuters on Thursday.

Finance Minister Olaf Scholz hopes the auction will raise up to 5 billion euros in funds, said the two people, who spoke on condition of anonymity.

Germany has seen good demand for its first green bonds, issued in early September, seen as a key moment for climate-focused European finance drivers. Germany raised 6.5 billion euros in 10-year bonds, after investors queued for more than 33 billion euros. (Reporting by Michael Nienaber and Rene Wagner Editing by Paul Carrel)

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