The Ministry of Economy has published the information sheet , technical note of the new Construction Futura. The third issue will be placed from Monday 19 April to Friday 23 April 2021 (until 13.00 pm), unless closed early.
The proceeds of the placement, reserved as always for retail investors only, will be used to finance the measures for the economic recovery from the Covid-19 and the state expenses intended to deal with the pandemic, including those relating to the vaccination campaign.
The bond will have a maturity of 16 years and a double loyalty bonus:
- at the end of the bond's first eight years of life, the investor who will have held the BTP Futura since issue will be entitled to an intermediate premium equal to 40% of the average nominal GDP growth rate recorded in the first eight years of the bond's life security, with a minimum of 0,4% of the invested capital, up to a maximum of 1,2%.
- At the final maturity (after the following eight years), investors who have continued to hold the security without interruption from issue to maturity will be paid a final premium which will include two components: the first equal to the remaining 60% of the average the GDP growth rate recorded in the first eight years of the title, with a minimum of 0,6% up to a maximum of 1,8%; the second equal to 100% of the average GDP growth rate recorded from the ninth to the sixteenth year, with a minimum of 1% and a maximum of 3% of invested capital.
The BTP Futura pays semi-annual nominal coupons calculated on pre-established and increasing rates over time (the so-called step-up mechanism). The coupons will be calculated on the basis of a given fixed coupon rate for the first 4 years, which increases once for the next 4 years, once again for the next 4 years and finally a third time for the remaining 4 years of the security's life before the deadline.
The series of guaranteed minimum coupon rates of this first issue of the BTP Futura will be communicated to the public on Friday 16 April 2021, while the definitive coupon rates will be announced at the close of the placement, on 23 April, and in any case cannot be lower than the minimum coupon rates guaranteed communicated at the start of the placement. Furthermore, the coupon rate for the first 4 years will remain unchanged, while based on market conditions, only the rates subsequent to the first may be revised upwards.
The title will be placed au pair (price 100) on the market through the MOT electronic platform of Borsa Italiana. The placement does not envisage distributions, nor will any maximum cap be applied. The ministry can close the issue early, but not before Wednesday 21 April.
To the subscriber no purchase commissions will be applied on the placement days, while the usual preferential taxation on government bonds of 12,5% and the exemption from inheritance taxes will continue to be applied to the yield of the bond as for other multi-year Treasury bills.
