The Ministry of Economy and Finance announces the placement details of the syndicated issuance of a new 5-year BTP and tap of the 30-year BTP benchmark bond.
Around 360 investors have taken part to both transactions with a total amount requested of above 110 billion Euros, almost equally distributed among the two issuances. Nearly more than half of the issuance has been allotted for both transactions to fund managers (about 51% and 53% respectively for the 5-year bond and 30-year bond), while a share of about 30% has been subscribed by banks (respectively 33% and 29%). Investors with a long-term investment horizon have bought about 10% of the issuance (in particular for the 5-year transaction the share has been around 9% of which central banks and official institutions account for about 6%, while for the 30-year tap the share of pension funds and insurance companies has been about 3.5%, while central banks and official institutions have been allotted for 7.5%). Hedge funds have subscribed about 7% of the total amount issued.
On a geographical basis, both transactions have gathered an extraordinary diversified participation (more than 40 countries), with an extensive prevalence of foreign investors, that have been allotted for around 76% on the 5-year bond and for 81% on the 30-year bond. Among foreign investors, the participation of those from UK has been relevant, as they have been allocated for 33% on the 5-year transaction and for 42% on the 30-year one. The rest of the placement has been allotted mainly to investors from continental Europe (36.3% and 33% respectively for 5 and 30 year), and in particular from Germany (respectively 9% and 12%), Spain (respectively 11% and 6%), France (respectively 5% and 6%). The participation of north-American investors has been subdued, around 2.5% and 1.5% respectively on the 5 and 30-year. Asian investors have received around 1% and 1.5% of the amount issued respectively on the 5 and 30-year bond.
The bonds have been placed through a syndicate structured with six lead managers, Banca IMI S.p.A, BofA Securities Europe S.A., Deutsche Bank A.G., JP Morgan Securities PLC, Nomura Int and Société Générale Inv. Banking, while the remaining Specialists in Italian Government Bonds participated as co-lead managers.