July 8, 2019 / 4:49 PM / 2 months ago

UPDATE 1-Debt-laden Italy seizes moment to borrow more 50-year funds

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MILAN, July 8 (Reuters) - Italy’s Treasury has hired investment banks to help sell more of its 50-year bonds to institutional investors, seizing on improved market confidence after the government avoided European Union disciplinary action for excessive debt.

Last week, Rome persuaded the European Commission that new budget measures it had submitted would help bring its growing debt in line with EU fiscal rules.

That truce with Brussels, combined with expectations that the European Central Bank would retain its dovish stance under its incoming new governor Christine Lagarde, helped Italian government bond yields fall to their lowest since 2016.

The Treasury’s top-up of the 2.80% March 2067 BTP bond will be managed by Citigroup, Deutsche Bank, Goldman Sachs and UniCredit via syndicate, the Treasury said on Monday.

The transaction will be launched in the near future subject to market conditions, the Treasury added. On syndicated bond issues, it does not give guidance on amounts to be borrowed.

The Treasury will offer 3-year and 7-year BTP bonds only at regular auctions on Thursday, it said.

Several Italian banks, including UBI Banca and Banca Montepaschi, also took advantage of improved financial conditions last week to raise new debt. (Reporting by Giulio Piovaccari Editingby Mark Bendeich)

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