MNI: Italy Aims At Dollar Bond Sales In 2023

Italy is targeting a return to the dollar funding market in 2023 after more than a year, but officials are carefully monitoring conditions and would need to see a closer alignment between BTP costs and those in U.S. currency, sources close to the matter told MNI.

The euro-dollar exchange rate will be another major factor, sources said.

“As soon as costs align or are very similar, the Treasury won’t hesitate to consider offering dollar instruments,” one source said, noting that dollar borrowing was skipped in 2022 due largely to euro weakness and volatility

This year’s issuance could be via the reopening of existing bonds or a new benchmark, sources added.

TEN-YEAR GREEN BOND

As published in its debt guidelines in December, it is expected that total green issuance will exceed last year’s total, although dependent “on market trends and demand for these specific products,” said the source.

To hit funding targets, issuance is likely to be in the 10-year sector and split between existing and new benchmarks, “in order to guarantee efficient liquidity conditions for each individual bond,” the source added..