Italy drew bids of $117 billion for first bonds after rating upgrade

On Wednesday, Italy placed bonds worth €11 billion, with total investor demand exceeding €103 billion ($117.42 billion). The offering consisted of two tranches: €8 billion worth of seven-year debt and €3 billion worth of 30-year inflation-linked bonds. 

According to Bloomberg sources, the surge in demand was due to the recent upgrade of the country's credit rating and stable market conditions, which allowed more favorable prices to be locked in.

Investor interest in 30-year bonds alone reached over €53 billion ($60.42 billion). During trading, the premium fell by 1 basis point for seven-year debt and by 2 basis points for thirty-year inflation-linked bonds. With the funds received, Finance Minister Giancarlo Giorgetti confirmed that no additional bond issue is needed.

The deal was managed by BBVA, BofA Securities, Goldman Sachs Bank Europe SE, JP Morgan, Natixis, and Societe Generale. Last Friday, the S&P rating agency upgraded Italy's credit rating to BBB+ with a stable outlook, noting the improvement of the country's economic and monetary indicators, as well as progress in stabilizing the government debt problem.