Telecom Italia, Italy's leading telephone company, has capitalised on an overwhelming bid for telecoms bonds by increasing the size and bringing forward the launch of its benchmark bond, which was the first major supply from a European telecoms company this year.

Telecom Italia had planned to raise €1.5bn ($1.3bn) in early February, but boosted the size of the dual tranche deal, which was lead managed by Lehman Brothers, JP Morgan, Merrill Lynch and Mediobanca, to €2.5bn on Wednesday, after encountering staggering demand from supply-starved investors.