Italy's mixed fortunes in the year after Parmalat

Author: | Published: 1 Jun 2005

The experience of capital markets lawyers in Italy was mixed over the past 12 months as confidence among retail investors collapsed after the Parmalat scandal but institutional demand held on. In the equity markets it was a quiet year but, at the same time, one that saw Italy's biggest initial public offering since 2001 - a €1.7 billion ($2.15 billion) deal by electrical grid operator Terna in June. Meanwhile, securitization grew steadily, as the Italian government and regional authorities sought new ways to fund infrastructure payments.

Retail fears

The beginning of 2005 saw the reopening of the retail debt market for Italian corporates after a year in which not a single bond was offered to retail investors. Enel's €1 billion ($1.26 billion) issue in February was the first deal to tap the retail market since the insolvency of Parmalat at the end of 2003. "It is a sign...