On November 19, the Btp Italia returns. In fact, the new issue of the government bond indexed to Italian inflation will start on Monday, the second of the year and the fourteenth since its debut (2012). This time these are 4-year securities, with a maturity set for 26 November 2022. The last placement, which took place in May 2018, closed with total funding equal to 7,7 billion euros.
Ma it is better to buy the Btp Italia in such a turbulent period for Italian bonds? Here are all the features.
BTP ITALIA: WHAT THEY ARE AND HOW THEY WORK
Btp Italia are government bonds designed to meet the needs of small savers and retail investors. I am bonds indexed to Italian inflation, more protected against price increases thanks to coupons offering a guaranteed minimum annual real rate, paid every six months together with the capital appreciation for inflation for the six months.
As the Ministry of Economy and Finance explains, “in case of no inflation or deflation, the capital does not lose value because at least the subscribed nominal capital will be paid at maturity". The protection "covers" not only the principal amount, but also the interest.
Compared to other government bonds, the Btp Italia also presents a substantial "practical" difference, the issue is carried out through the MOT platform of Borsa Italiana and not through the classic auction called by the Treasury. This implies that the subscription of Btp Italia can be done not only in the bank and at post offices, but also directly through any home banking enabled for trading functions.
BTP ITALIA: THE MAIN FEATURES
From 2012 to today, the Btp Italia have always maintained the same characteristics:
- Guaranteed minimum real annual rate
- Half-yearly coupons every 6 months on the capital revalued according to Italian inflation for the period
- Immediate recovery from inflation thanks to the capital revaluation paid every six months
- Guaranteed nominal capital at maturity, even in the event of deflation
- Loyalty Award 4 per thousand (gross) for individual savers and similar who buy upon issue and hold the security until maturity.
- Taxation subsidized returns at 12,5%
- No commission for those who buy during the days of issue.
- The minimum denomination that can be purchased it is 100 euros for retail and XNUMX for institutions.
BTP ITALIA: THE RATE
The guaranteed minimum annual (real) coupon rate was set at 1,45%, while the definitive annual (real) coupon rate will be established at the end of the purchase order collection period (22 November). In any case, the latter cannot be lower than the guaranteed minimum annual (real) coupon rate.
The MEF also informs that "the inflation index number calculated on the date of entitlement and settlement of the bond is 102,48333".
BTP ITALIA: THE NEW ISSUE
As mentioned, the fourteenth issue of the BTP Italia will start on Monday 19 November and will end on Thursday 22 November, unless closed early. The placement will be divided into two phases:
- first stage (November 19-21): intended for individual and similar investors.
- Second phase (22 November, from 9 to 11): intended for institutional investors. In this second tranche, the Treasury has the option of limiting the supply.
The securities offered in the two phases are characterized by two distinct ISIN codes. The one of the first phase is: IT0005351660.
