Italy aims to emulate Spain in dollars

The Republic of Italy has followed Spain into the dollar market to take advantage of the beneficial euro/dollar basis swap. Pricing of the $2bn plus three year has been revised from mid-swaps less 13bp to less 14bp based on a book of over $3bn. The deal will be priced this afternoon at the New York open. Meanwhile, Rentenbank is marketing a five year dollar global via Goldman Sachs, RBC and RBS at mid-swaps less 16bp. The Spanish deal was heavily oversubscribed, being priced at less 28bp and now trades at around less 45bp. Will the Italy transaction enjoy such a stellar reception and how will Renten fare in the five year space? Read Friday’s EuroWeek to find out.