The Ministry of Economy and Finance announces the placement result of the first tranche of the new 15-year BTP. The bond, maturing on the 1st March 2025, with accrual date 1st March 2009, has 5.00% annual coupon, paid on a semi-annual basis. The settlement date of the transaction is set on July 15th.
The amount of 5.5 billion euros has been issued at a re-offer price of 99.014, equivalent to a 5.155% gross annual yield.
The bond has been placed through a syndicate structured with five lead managers, Citigroup Global Markets Ltd., HSBC France, Morgan Stanley & Co. Int. PLC, Monte dei Paschi di Siena Capital Services Banca per le Imprese S.p.A., Société Générale Inv. Banking. All the other Specialists in Italian Government bonds have been invited to participate as Co-Lead Managers.
Almost 150 investors took part to the transaction with a total amount of orders of around 8 billion Euros. Banks have accounted for the 40% of the issuance while insurance companies and pension funds were allotted 23% of the transaction. Fund Managers have received 20% of the issued amount, while central banks got more than 6%. Hedge funds have been allotted slightly more than 9%.
The geographical distribution has been well diversified: besides the participation of Italian investors, about 26%, it is worth noting the presence of investors resident in France (25%) and in the UK and Ireland (23%). Significant interest has been also shown by the other European countries: Germany and Austria (9.5%), Scandinavia (6.5%) and Benelux (4%). Asian and US investors took also part to the transaction.
This announcement is not an offer for sale of securities in the United States. The BTPs have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.