Italy BTP Green bonds see 110 billion euro demand

The Italian Ministry of Economy and Finance has successfully placed 8 billion euros of new 12-year BTP Green bonds, which mature on October 30, 2038. The issuance saw extraordinary demand, with requests exceeding 110 billion euros, representing nearly 14 times the amount offered.

Interest was heavily driven by Environmental, Social, and Governance (ESG) investors, who accounted for approximately 80% of the subscriptions. The investor base was highly international, involving over 330 investors from more than 35 countries. Foreign investors covered 74.7% of the offering, with the United Kingdom leading at 29.7%, followed by Scandinavian countries, the Iberian Peninsula, and the Middle East. Italian investors accounted for the remaining 25.3%.

The bonds carry an annual fixed coupon of 4.40%, with a gross annual yield at issuance of 4.492% due to the placement price of 99.591. The proceeds from these green bonds are earmarked for environmentally sustainable initiatives, including renewable energy, energy efficiency, sustainable transport, and biodiversity protection.