The Ministry of Economy and Finance announces the placement details of the BTP Green syndicated reopening, the Italian government bond designed to support public expenditures with positive environmental impact, that was issued for the first time the last 3rd March 2021 with a 1.50% annual coupon and maturing on the 30th of April 2045.
Around 350 investors have taken part to the transaction with a total amount requested of above 55 billion Euros. Relevant has been the participation of ESG (Environmental, Social and Governance) investors who have subscribed almost half of the placement.
Overall, fund managers have been allotted for 45% of the issuance while a share of about 34% has been subscribed by banks. High participation has come from investors with a long-term horizon, who bought 18% of the issuance (in particular, pension funds and insurance companies for 12%, while central banks and official institutions have been allotted for 6%). Hedge funds have subscribed about 2% of the total amount issued while non-financial institutions have taken part to the transaction with a residual share of 1%.
In terms of geographical residence of investors, the placement has been extremely diversified with the involvement of investors coming from more than 30 countries: foreign investors have been allotted for 70% of the issuance, while domestic ones have bought a share of 30%.
Among foreign investors, the participation from the UK has been relevant as they have been allotted for about the 19%. The rest of the amount issued has been placed mainly to investors from continental Europe, and in particular from Germany, Austria and Switzerland (15%), France (9%), Iberian Peninsula (10%), Nordic countries (7%) and other European countries (8%).
Outside Europe, a share of 0.5% has been subscribed from the US while the rest of the issuance has been subscribed by investors resident in other countries.
The bond has been placed through a syndicate structured with five lead managers BofA Securities Europe S.A., Crédit Agricole Corp. Inv. Bank, Deutsche Bank A.G., Monte dei Paschi di Siena Capital Services Banca per le Imprese S.p.A. and Nomura Financial Products Europe GmbH while the remaining Specialists in Italian Government Bonds participated as co-lead managers.