May 23, 2017 / 10:07 AM / 5 months ago

Italy offers to repurchase Nov. 2017 BTP Italia in bond exchange

MILAN, May 23 (Reuters) - Italy’s Treasury has hired Banca IMI and UniCredit to buy back through a syndicate of banks a “BTP Italia” inflation-linked bond worth a total of 22.4 billion euros ($25 billion) that it would otherwise have to repay in full in November this year.

The Treasury said in a statement that as part of the exchange offer the two banks would place four BTP nominal bonds maturing, respectively, in February 2020, March 2025, November 2027 and March 2032 as well as a floating-rate CCTeu bond due in July 2023.

Italy introduced the BTP Italia bonds at the height of the euro zone debt crisis to tap large private wealth at home in the face of scant foreign demand for its debt.

Paying a generous premium over the Italian inflation rate, the bonds also proved a success with institutional buyers, leading to record-sized issues and prompting the Treasury to limit the amount sold to professional investors.

$1 = 0.8884 euros Reporting by Valentina Za

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