Close with one collection which is close to 12 billion euros in value for the eighteenth edition of BTP Italy. The security indexed to Italian inflation (FOI index, excluding tobacco - Consumer price index for blue and white-collar households, excluding tobacco), with first accrual on November 22, 2022 and maturity on November 22, 2028, recorded bookings for 4,713 billion euros by institutional investors which added to the 7,281 billion of the placement with small savers brought the total amount of the placement to 11,994 billion. With a rate definitive annual real coupon at 1,6%.
The previous issue of the BTP Italia in June 2022 obtained total orders for 9,44 billion euros, of which 7,26 billion from small savers and 2,17 billion (less than half of the current issue) from large investors.
The placement period was between Monday 14 November 2022 and Thursday 17 November. The first three days for small savers, the last for institutional operators.
Waiting for Fitch's judgment on Italy
Friday 18 November, with closed European markets, the rating agency Fitch will pronounce on sovereign rating ofItaly, currently BBB with a stable outlook. After issuing yet another warning on our accounts in October, Fitch had underlined that the space to change the Pnrr is "limited" and therefore "the approach of the next government to any potential renegotiation will be important for both growth and sentiment of the market". Especially since the Meloni government will have to deal with a difficult context, in which it will have to adapt "to higher interest rates and weaker growth prospects", which will produce "declining tax revenues" while spending will be put under pressure by the indexation of social security and welfare (including pensions) and support to deal with the energy crisis, with government bonds reaching a 9-year high at the end of September. This means "that the fiscal space to maneuver will be very limited if the public debt-to-GDP ratio is to continue to fall", highlighted the agency, which warns against the risk of "adverse market reactions" in the event of an announcement of “higher deficits”.
