MILAN, Jan 11 (Reuters) - Telecom Italia (TIM)  TLIT.MI  is
preparing to raise up to 1 billion euros ($1.2 billion) with its
first green bond, a source with knowledge of the matter said on
Monday, as Italy's biggest phone group strives to upgrade its
networks facilities.
    The former phone monopoly is working to modernise its fixed
and mobile grids, making them more energy-efficient, and targets
carbon neutrality by 2030. Green bonds allow borrowers to raise
funds for projects that benefit the environment.
    The source said the bond had an eight-year maturity and
would be issued for up to 1 billion euros. ($1 = 0.8207 euros)

 (Reporting by Elvira Pollina and Sara Rossi; editing by
Valentina Za)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))