UPDATE 2-Italy confirms 40-year bond sale
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By John Geddie
LONDON, Sept 5 (IFR) - The Republic of Italy, rated Baa2/BBB/BBB+, issued a new EUR500m 40-year bond via private placement, confirmed a spokesperson for the Italian treasury on Thursday.
The bond matures on 11 September 2053 and carries a coupon of 5.05%. UBS confirmed it had managed the trade, which was executed on Wednesday, but neither party would comment on the investor.
"It is not our policy to officially confirm the name of the counterpart in the agreement for privacy reasons," said the treasury spokesperson in an emailed statement.
Back in May, Italy issued a EUR6bn 4.75% 30-year bond via syndication, and then weeks later issued a EUR500m 4.75% 50-year private placement via Barclays.
Italy has struggled to issue long-dated bonds in recent years, which has seen the average lifespan of its debt reduce and its pressure to refinance increase.
A steady drop in its bond yields in the year to date, however, is helping to alleviate this problem.
Italy's benchmark 30-year bond - 5% September 2040 - was yielding as much as 7.3% at the end of 2011 but has since steadily ground tighter, touching 2013 lows of 4.6% in May this year. On Thursday afternoon, those bonds were bid at 5.15%, according to Tradeweb. (Reporting by John Geddie; Editing by Andrew Perrin)
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