(Jan 8): Italy and Portugal are adding to a record-breaking week for global bond sales, with big government debt deals on offer on Thursday alongside another heavy slate of corporate and financial offerings.
At least 23 issuers are expected to price bonds in Europe’s primary market, raising at least €23.8 billion, according to data compiled by Bloomberg. That follows Wednesday’s all-time high of more than €61 billion.
Global bond sales are having their busiest ever start to a year as borrowers of every stripe seize on investors’ buoyant appetite for risk. Corporations and governments in the US, Europe and Asia had already borrowed roughly US$260 billion across currencies by the close of business on Wednesday.
Italy is starting its 2026 funding programme looking to sell a new seven-year benchmark note, alongside a €5 billion increase of its green bond maturing in April 2046, according to people familiar with the matter. Combined demand has topped €190 billion, with the deals set to price at seven and eight basis points over comparable debt, the people said.
The offering comes as Italy emerges as one of the market’s preferred sovereign borrowers. Investors are rewarding the government for efforts to consolidate debt at a time when political instability and large fiscal deficits are weighing on other countries such as France. Portugal drew a more modest orderbook above €42 billion on Thursday.
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While bumper-sized offerings from governments are driving volumes higher this week, financials are also raising plenty of debt. Commerzbank AG and BPCE SFH are selling covered bonds, and Deutsche Bank AG is seeking Tier 2 notes. Other notable sales include Spanish telecoms infrastructure operator Cellnex Telecom SA looking to raise at least €1 billion through a financing entity to refinance outstanding debt.
January is usually a busy time for new investment-grade debt issuance, as borrowers get a headstart on their annual capital-raising plans. Italy has previously benefited from the trend, attracting a record €142 billion of orders last year for a 10-year bond. The country’s credit rating has been upgraded since then, adding to its appeal.
Such debt syndications are typically more expensive than regular auctions, but they allow governments to raise large sums quickly while diversifying their investor base.
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Portugal’s 10-year euro-benchmark sized deal is being offered at 34 basis points over euro midswaps, according to a person familiar with the matter. Poland is also in the market with a two-part sale. These deals follow a record-breaking transaction on Wednesday by Belgium.
With supply set to remain heavy in the coming weeks, today’s sales will be closely watched as a gauge of whether the demand seen at the start of the year can be sustained.
Uploaded by Evelyn Chan
