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MILAN, Aug 23 (Reuters) - Italian energy group Italenergia said on Friday it had raised 829.6 million euros by selling a first tranche of new bonds, another step in its push into the Italian energy market via a four billion-euro restructuring.
Italenergia, which is due to merge with its Edison unit later this year, had to tap part of its greenshoe, or overallotment option, to raise its 2002-2007 bond offer from 810 million euros, it said in a statement with its banks.
The bond, which was only offered to clients of the two managing banks -- Sanpaolo IMI and UniCredito -- will pay 4.7 percent interest for the first two years, to be paid in six-monthly installments.
In the other three years, it will pay 75 basis points above the six-month Euribor rate, with a maximum rate of 5.75 percent.
"The bond issue will allow the group to reduce the cost of its debt and will be used to refinance a loan signed (last year) to take over Montedison with more favourable financing sources," the statement said.
Italenergia came together last year for a successful swoop on agro-energy holding Montedison. It has since been selling off food holdings to concentrate on electricity group Edison and boost its place in the lucrative, liberalising Italian market.
Part of the push is to raise four billion euros via a one billion euro capital increase, a one billion euro subordinated loan backed by shareholder Electricite de France [EDF.UL] and two billion euros of debt sold on the market, including Friday's 829.6 million.
Last week, sources said Italian bourse regulator Consob had approved a shareholder shake-up at Italenergia which will see Fiat cut its stake to 24.6 percent from 38.6 percent and raise 1.7 billion euros to weather a crisis at its car unit.
Thanks to a complex criss-cross of options, Fiat can still buy back more than its original stake from fellow shareholders if it is in better financial shape by 2005.
If not, the stakes could be bought by EdF which owns 18 percent of Italenergia but whose voting rights were capped at two percent by Italy's government in protest at a virtual monopoly moving into its liberalising market while the French market stays remains relatively closed to competition.