(Telecompaper) Telecom Italia has raised EUR 750 million in the issue of a subordinated bond, as part of its EUR 3 billion hybrid bond programme announced in February. Telecom Italia said strong demand for the 60-year bond allowed it to price the issue at a lower yield than the initial guidance. The fixed annual rate was set at 7.75 percent until the first call date in 2018. Additional coupon step-ups are planned, of 25 bps in 2023 and 75bps in 2038. Telecom Italia expects the rating agencies to classify the hybrid issue as half equity.