BTP Italy: it begins again. The Ministry of Economy announced a new issue of treasury bills indexed to the national inflation rate, one of the products most appreciated by retail savers in our country. This time, the amount obtained from the bonds sold will be used entirely to deal with the coronavirus emergency. In particular, the new bonds are intended to "finance the expenses of recent government measures – reads the Treasury statement – in support of the health system”, of work and “of the national economy”.
ISSUE BTP ITALY MAY 2020: THE DATES
As always, the launch of the BTP Italia will take place in two phases:
- from Monday 18 to Wednesday 20 May the bonds will only be purchasable by individual savers (retail market);
- the 21 May, instead, it will be the turn of the institutional investors.
NEW: NO EARLY CLOSING OF AUCTIONS
Compared to previous issues of Btp Italia, there is a novelty: there is no possibility of closing the auctions in advance once a certain quota of subscriptions has been reached, so all Italian savers who want to invest in these bonds will have three full days to do so. In short, there will be no need to hurry. The decision was taken "to encourage the maximum participation of savers - explains the Ministry of Economy - and to facilitate the work of financial intermediaries in this particular period".
HOW TO BUY BTP ITALIA ONLINE
But how to buy Btp Italia while confined at home for the quarantine? The Treasury recalls that the web investment channel is always open, through the online trading service offered by credit institutions on internet banking. There is therefore no need to go to the bank or post office branch where you have a securities account.
FURTHER DETAILS ON THE NEW BTP ITALIA
The Ministry of the Economy has chosen to announce the new issue of Btp Italia well in advance "in consideration of the difficult context in which the operation takes place", but to get all the details on the new securities being placed, it will be necessary to wait a few more days. However, the Treasury ensures that the duration of the bonds "it will be in line with previous issues and with what has already been anticipated by the 2020 public debt guidelines, i.e. between 4 and 8 years".
Furthermore, the placement will take place as always on the MOT platform (the electronic market for bonds and government securities of Borsa Italiana) through Banca IMI, Bnp Paribas, Monte dei Paschi di Siena Capital Services Banca per le Imprese and Unicredit.
