MILAN, Dec 1 (Reuters) - Autostrade per l'Italia said on Tuesday it had raised 1.25 billion euros ($1.5 billion) in a bond sale, marking a debt market return after more than three years for Atlantia 's ATL.MI motorway business.
Italian infrastructure group Atlantia is still negotiating with the Italian government to settle a long-standing dispute triggered by the 2018 deadly collapse of a motorway bridge in Genoa operated by Autostrade.
Autostrade, which is 88% owned by Atlantia, said it had placed the 8-year notes with institutional investors through a private placement that drew demand worth 3.7 billion euros.
Atlantia is in talks with state-backed investor CDP, and co-investors Macquarie MQG.AX and Blackstone (NYSE:BX) BX.N , over the sale of its stake in the motorway operator, which was the first company ever to tap the Eurobond market in 1963.
Autostrade paid a 2.163% yield or 250 basis points above the reference mid-swap rate, attracting demand at a time of sub-zero rates due to the European Central Bank's massive stimulus programme to support the eurozone's coronavirus hit economy.
"The issuance's result shows that markets believe in our transformation plan," Autostrade CEO Roberto Tomasi said, adding that the bond would allow the company to finance a large-scale works programme envisaged in a new investment and tariff plan.
Earlier this year credit rating agencies pushed Autostrade's debt into so-called junk territory after the Italian government threatened to revoke its motorway concession.
Morgan Stanley (NYSE:MS) acted as sole global coordinator and sole active bookrunner and Banca Akros, Imi - Intesa Sanpaolo (MI:ISP), Mediobanca, Natixis, UBI Banca and UniCredit as bookrunners.
White & Case and Allen & Overy acted as legal advisors to the company and its banks, respectively. ($1 = 0.8301 euros) ($1 = 0.8300 euros)