January 18, 2017 / 2:13 PM / 8 months ago

Italy to sell 6 bln euros of new 15-year bond - lead

MILAN, Jan 18 (Reuters) - Italy will issue 6 billion euros ($6.4 billion) of a new 15-year bond it launched on Wednesday in the first test of market demand for its debt since last week’s sovereign downgrade, an official at one of the banks managing the sale said.

Italy on Friday lost the last remaining single ‘A’ rating on its debt when Canadian agency DBRS downgraded it to ‘BBB (high)’ from ‘A (low)'. Despite the downgrade, the new issue drew more than 21 billion euros in orders from investors, Thomson Reuters’s IFR service reported.

The bond, maturing in Sept. 2033, is set to be priced later on Wednesday to offer a spread of 18 basis points over the current 15-year benchmark due in March 2032 which yielded 2.32 percent by 1407 GMT.

Banca IMI, Barclays, Credit Agricole, ING and Royal Bank of Scotland are managing the sale. Italy had last issued a new 15-year bond in March 2015. ($1 = 0.9376 euros) (Reporting by Giulio Piovaccari; writing by Francesca Landini, editing by Valentina Za)

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