The Italian Corporate Bonds Roundtable

The fallout from the Irish debt crisis late last year rocked bond markets throughout the eurozone. But peripheral countries, particularly Spain, Portugal and Italy, were hit hardest. Until the last five weeks of 2010, corporate borrowers in those countries had enjoyed improving conditions in the capital markets. Italian sunglasses maker Luxottica sold a Eu500m debut Eurobond in early November, the deal drawing almost Eu2bn of orders, despite the company being unrated. The same day Edison, Italy’s second biggest utility, issued a Eu600m deal that was twice covered. Shortly afterwards, oil and gas group Eni printed a Eu1bn seven year bond 12bp inside the Republic of Italy’s curve. Many syndicate bankers said it was the first time in their careers that they had seen a European corporate price tighter that its sovereign.