Here comes the last appointment of 2016 with i BTP Italy. The Ministry of the Economy announces in a press release that the second and last issue of this year of this particular category of government bonds indexed to the national inflation rate and particularly appreciated by small savers will be held from Monday 17 to Thursday 20 October .
The new BTP Italia will be placed on the market through the MOT electronic platform of Borsa Italiana. The issuance will take place in two stages: the first from Monday 17 to Wednesday 19 October (three days which can be reduced to two in case of early closure) will be reserved to individual savers and to other related, while the second, which will take place in the sole morning of October 20thwill be reserved for institutional investors.
For the latter, the placement could provide for an allotment, in the event that the total of orders received is higher than the final offer established by the MEF. On the contrary, for customers of small savers no maximum cap will be applied, ensuring complete satisfaction of orders, as in all previous issues.
The new issue of BTP Italia will have the same characteristics as the last two: the securities will have maturity of 8 years, half-yearly coupons indexed to the Foi (Index of consumer prices for blue and white-collar households, net of tobacco), to which it will be added the inflation recovery payment accrued in the half-year (with the provision of a floor in the event of deflation, which guarantees that the coupons actually paid are in any case not lower than the definitive guaranteed real rate).
Il reimbursement it will take place in a single solution upon expiry of the Italian BTPs. Anyone who purchases the issue during the placement phase dedicated to individual savers and holds the security until maturity will also receive a "Loyalty Award” at the time of refund.
In the coming days, the Ministry of Economy will publish on the Public Debt website the technical data sheet of the new BTP Italia and will proceed with updating the FAQs, to provide savers and market operators with all the information elements useful for taking part in the imminent placement.
Il guaranteed minimum annual real rate for this new issue it will be communicated to the public on Friday 14 October 2016.
WHAT IS THE BTP ITALIA?
The BTp Italia is a government bond indexed to Italian inflation, designed above all for the needs of the retail market. The BTp Italia provides the investor with protection against the increase in the level of Italian prices, with coupons that offer a guaranteed minimum real annual rate (linked to the ISTAT index of consumer prices for families of workers and employees - FOI, net of tobacco), paid semi-annually together with the capital appreciation for the inflation of the semester. 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.
MAIN FEATURES OF THE BTP ITALIA
Duration: 8 years
Guaranteed minimum real annual rate
Coupons half-yearly calculated on the revalued capital
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 for those who buy upon issue in the First Phase of the placement and keep the security until maturity, therefore reserved for individual savers and other similar
