Italy gets record demand for new 15-year bond in a busy start for 2025

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ROME, Feb 11 (Reuters) - Italy on Tuesday raised 13 billion euros from its second syndicated bond of 2025, seeing record demand for a single-tranche deal, in a busy start to the year for euro zone issuers.

Governments in the 20-nation bloc have sold a huge amount of notes directly to investors since the beginning of 2025, as European Central Bank interest rate cuts continue to support a weakening economy amid uncertainties related to U.S. President Donald Trump's policies on tariffs.

Final orders for Italy's new 15-year BTP bond, maturing October 1, 2040, stood at 133 billion euros, around 10 times the deal's size of 13 billion, its lead managers said. That compared with interest of more than 76 billion euros for a similar issuance almost one year ago.

Italy's Rome-based Treasury saw demand of nearly 15 times the 18 billion euros it raised in a dual-tranche BTP bond earlier in January, a sign of strong appetite from investors.

The European Commission on Tuesday raised 11 billion euros from the tap of a bond maturing December 2031 and of a green bond due in February 2050, according to a lead manager, with demand exceeding 155 billion euros.

Also Spain, France, Ireland, Greece, Portugal and Belgium launched syndicated deals last month.

The spread for Italy's new 15-year BTP was set at 7 basis points over the outstanding note due on October 2039, from initial yield guidance at around 9 basis points.

Italy's 15-year BTP bond yields were trading at around 3.87% on the market on Tuesday, with a 4.15% coupon. IT15YT=RR

Barclays, Deutsche Bank, Intesa Sanpaolo, Morgan Stanley and Nomura managed Italy's syndicated bond issue.