(Adds comments, context)
MILAN, March 1 (Reuters) - Italy's Treasury may raise
around 10 billion euros ($10.66 billion), in line with the
previous two issues last year, in a new BTP Italia bond next
week, a source close to the matter said on Wednesday.
The Italian Treasury will offer a new inflation-linked bond
with a five-year maturity between March 6 and March 9.
The Treasury declined to comment.
"Considering market conditions and the recent interest for
inflation-linked notes, demand could easily be around 10 billion
euros," the source told Reuters.
Last November, Italy raised a total of 11.99 billion euros
with its BTP Italia note due in November 2028 and last June it
sold 9.45 billion euros in the equivalent maturing June 2030.
"Even if the amount (of the new issue) were to be lower, the
important thing at the moment is to keep up the pace of these
offerings because of the favourable conditions", the source
said.
"I think that they (the Treasury) are focusing more on the
frequency of issues than on hoping to achieve record (demand)
numbers."
The economy ministry has said it is considering other
issuances for domestic savers, as part of a strategy to put more
of the country's huge public debt - proportionally the second
highest in the euro zone - in Italian hands.
"Small savers deserve greater attention now," the source
said.
The new inflation-linked bond BTP Italia will have a loyalty
bonus of 0.8% for retail investors who purchase the note at
issuance and hold it until maturity.
The guaranteed minimum annual coupon will be announced on
Friday.
"Probably it will be in line with the previous but it is
hard to predict," the source said.
Last November the Treasury kept the annual coupon at 1.6%.
(Reporting by Sara Rossi, editing by Alvise Armellini, William
Maclean)
