The Ministry of Economy and Finance announces the placement details of the syndicated issuance of the new benchmark 7-year BTP and the new benchmark 30-year BTP€i.
Around 240 investors have taken part to the 7-year BTP issuance and around 290 investors to the 30-year BTP€i. The total amount requested exceeded 103 billion Euros, of which above 50 billion Euros for the 7-year and above 53 billion Euros for the 30-year linker transaction. Fund managers subscribed a share of 35.4% of the total amount issued for the 7-year BTP and 37.9% for the 30-year BTP€i, while a share of respectively 42.2% and 30% has been subscribed by banks. Investors with a long-term investment horizon have bought a relevant share, equal to 19.2% of the 7-year issuance (of which central banks and official institutions account for 14.2% while pension funds and insurance companies for 5%), and 27.1% of the 30-year linker (central banks and official institutions have been allotted for 6.7%, while a significant share of 20.4% has been allocated to pension funds and insurance companies). Hedge funds have subscribed respectively the 3.1% and 4.9% of the total amount issued for the 7-year BTP and the 30-year BTP€i.
Both transactions have gathered a largely diversified participation (about 35 countries for both bonds), with a significant interest from foreign investors shown by their allotted shares for 68.7% (7-year BTP) and for 82.6% (30-year BTP€i), while domestic investors have subscribed respectively 31.3% and 17.4%. Among foreign investors, the highest share of the issuance has been subscribed in Europe, in particular from UK (15.2% on the 7-year BTP and 21.7% on the 30-year BTP€i), Iberian Peninsula (17.5% and 15.9%), France (10.1% and 10.6%), Nordic countries (8% and 14.9%), Germany, Austria and Switzerland (9.2% and 6.5%) and other European countries (4.8% and 4.9%). The participation of North American investors has been around 2.5% and 8% respectively on the 7-year and 30-year linker bonds while the remaining shares of both issuances has been allotted to other non-European countries.
The bonds have been placed through a syndicate structured with six lead managers, Banco Bilbao Vizcaya Argentaria SA, BofA Securities Europe S.A., Goldman Sachs Bank Europe SE, J.P. Morgan SE, Natixis SA and Société Générale Inv. Banking, while the remaining Specialists in Italian Government Bonds participated as co-lead managers.