The Btp Italia in placement from Monday will have a guaranteed minimum annual coupon rate of 1,65%. A statement from the Treasury made it known today. The definitive annual (real) coupon rate will be set at the end of the order collection period and cannot be lower than the guaranteed minimum annual (real) coupon rate. The BTP Italia is an issue intended for retail (but also open to institutions) which is indexed to Italian inflation according to the Foi index without tobacco (Index of consumer prices for blue- and white-collar households, excluding tobacco). The inflation index number calculated on the date of entitlement and settlement of the security is 107,22667.
The new issue, the sixth, will start on Monday and has some different characteristics from the previous ones. Firstly, it provides for two distinct placements between retail and institutional. In past issues there were not two phases but only one for retail and institutional together. The new placement methods provide for a first phase which opens on April 14th and closes on the 17th intended for retail. Here the treasury will be able to decide on early closure but still guarantees a minimum of two days for the subscription of the security, on 14 and 15 April. The second phase will be held in a single day, on the 17th, and will be aimed at institutional investors. Here too, there is the possibility of closing the placement in advance before the natural end of the trading day, by giving 30 minutes' notice. The Mef guarantees full satisfaction of the applications received on the Mot at a fixed price of 100 during the opening of the placement.
The second important difference with past issues is the duration of the BTP Italia which rises to six years from four. Behind this choice is the need to make the issue attractive in a scenario of very low rates. Which, explained Cannata, prompted "to lengthen the investment horizon" from four to six years.
Characteristics unchanged on the financial front instead: six-monthly coupons indexed to the Foi (ex tobacco) to which is added the payment for the recovery of the inflation accrued in the six-month period, (with the provision of a floor in the event of deflation), a single repayment on expiry and a loyalty bonus for those who buy at issuance during the first phase of distribution and holds the security until maturity. In the event of deflation, the coupons are in any case calculated on the nominal capital invested, therefore with protection extended not only to the principal amount, but also to interest.
The subscription methods are similar: the Btp Italia can be subscribed directly online through any home-banking system where the trading function is active. Alternatively, as with all other government bonds, you can contact the bank counter or the Italian post office where you hold a securities account. The minimum denomination that can be subscribed is 1.000 euros or multiples. The ISIN code of the security is IT0005012783.
