May 20, 2020 / 3:48 PM / 6 days ago

New 'BTP Italia' bond raises 14 bln euros in three days of retail offer

ROME, May 20 (Reuters) - Small investors welcomed the new ‘BTP Italia’ inflation-linked bond which raised a total of just over 14 billion euros ($15.39 billion) at the end of three days of a retail offering, bourse data showed on Wednesday.

Proceeds from the sale of the bond, which drew a much higher interest than the last issue in October, are aimed at offsetting the negative impact of the coronavirus crisis on the Italian economy, whose debt is seen ballooning.

“This was the best placement to retail investors ever,” a Treasury source said.

The Treasury will offer the new retail linker, which has a maturity of five years and pays a premium of at least 1.40% over the domestic inflation rate, to professional buyers on Thursday, from 0800 to 1000 GMT.

The final coupon yield for the new linker will be set on Thursday, by 0800 GMT.

The previous October 2019 issue, with a maturity of 8 years, raised a total of 6.75 billion euros, 2.99 billion euros of which were bought by small savers. ($1 = 0.9098 euros) (Reporting by Stefano Bernabei, editing by Agnieszka Flak)

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