Simmons & Simmons’ Milan team has advised on the third issuance of an Italian government bond intended to support Italy’s COVID-19 vaccination campaign. This is the first sovereign bond where the proceeds will be used to fund a nation’s vaccine programme.
The debt capital markets team in Milan has advised the dealers and co-dealers on the new €5.48bn issuance of BTP Futura, a 16-year Italian government step-up bond with semi-annual coupons set based on a series of coupon rates that increase over time.
This is the third issuance of BTP Futura, which was placed on the market through Borsa Italiana’s electronic bond market (MOT) platform in a phase exclusively dedicated to retail investors. It pays an intermediate loyalty premium for the first eight years of the life of the bond and a final loyalty premium for investors who hold the bond until maturity.
A unique element of this new issuance is that the proceeds will go toward funding Italy’s vaccination campaign against COVID-19 and, like the previous two issuances, toward economic measures to help the country recover from the pandemic.
The Simmons & Simmons team, which advised on the issuance and drew up the related documentation, was led by Milan office partner Paola Leocani and included managing associate Baldassarre Battista.
