The Ministry of Economy and Finance announces the placement details of the new 30-year BTP, maturing on the 1st March 2047, with a 2.70% coupon.
Around 340 investors have taken part to the transaction with a total amount requested of almost 25.4 billion Euros. More than half of the issuance has been allotted to fund managers (53.1%) while the banks received around 24.4% of it. Investors with a long-term investment horizon have been allotted about 10.3% (in particular, pension funds and insurance companies for 6.2% while central banks and official institutions for 4.1%). Hedge funds bought about 8.9% of the total amount issued. Moreover, also non-financial institutions (corporations) have taken part to the transaction with an allotted share of 1.4% of the issuance.
In terms of geographical residence of investors, the placement has been extremely diversified with foreign investors overtaking domestic ones. The participation of investors from UK and Ireland has been relevant, as they have been allocated around 40.8% of the issuance against a demand of about 51.2% of the total amount requested. Domestic investors have been allotted around 26.5% of the issuance. The rest of the placement have been issued mainly in Europe (around 25.3%), and in particular in Germany/Austria (12.3%), in Scandinavian countries (3.8%), in the Iberian peninsula (2.8%), in France (2.7%) and in Benelux (2.2%). The participation of the Swiss investors, for an allotted share of about 1.3%, has also been significant. Outside Europe, also noticeable has been the presence of investors resident in the north America (US and Canada) that have received around 5.1% of the amount issued, against a demand of around 9.4% of the total amount requested. Finally, Asian investors have been allocated around 1% of the issuance.
The bond has been placed through a syndicate structured with five lead managers, Deutsche Bank A.G., Goldman Sachs Int. Bank, HSBC France, JP Morgan Securities PLC and Monte dei Paschi di Siena Capital Services Banca per le Imprese S.p.A., while the remaining Specialists in Italian Government Bonds participated as co-lead managers.