Only the last step was missing. With the announcement of guaranteed minimum rate of the third issue of Btp Value 2024 now everything is really ready. Monday February 26 the first placement of the government bond intended for 2024 will begin small savers, with which the Ministry of Economy hopes to retrace the successes recorded during the two previous tranches which raised 18,14 billion (June 2023) and 17,2 billion (October 2023) respectively.
Btp Valore 2024: the Mef announces the minimum guaranteed rate
Il guaranteed minimum coupon rate of the BTP Valore 2024 with a maturity of 6 years it will be equal to 3,25% for the first, second and third year, and 4% for the fourth, fifth and sixth year. This was communicated by the Ministry of Economy and Finance. At the end of the placement – the Mef specified – they will be announced the definitive coupon rates which may be confirmed or revised upwards, based on the market conditions on the closing day of the issue, set for 13pm on Friday 1st March, unless early closure.
The rates therefore return to the same level as the first issue in June 2023, when they were set at 3,25% for the first two years and 4% for the following two. In October, however, the returns were 4,1% for the first three years and 4,5% for the following two years.
Btp Valore 2024: highest loyalty bonus at 0,7%
Two days ago, Wednesday 21 February, the Mef announced the increase in extra prize final of fidelity, passed in this one third issue at 0,7% from the previous 0,5%. The premium will be collected by those who purchase the securities during the placement days - from 26 February to 1 March (at 13pm) and will keep it in their portfolio without interruption until the deadline.
Btp Valore 2024: news and main features
The two main innovations of the third issue of the BTP Valore scheduled from 26 February to 1 March concern the aforementioned increase in the loyalty premium from 0,5% to 0,7% and the extension of the deadline. The title will have a duration of six years. There were five in the second issue, four in the first. What is the "elongation" due to? The decline in interest rates recorded over the last few weeks. By extending the duration to 6 years, the Treasury will therefore be able to continue to maintain attractive yields, but not excessively onerous for the state coffers.
Based on how much established by the Ministry of Economy, the coupons of the new BTP Valore will be paid every three months, with pre-established and increasing returns over time based on a 3+3 year "step up" mechanism.
Who can purchase the title and how?
As for previous issues, the BTP Valore can be purchased exclusively by small savers through their home banking, if enabled for online trading functions, or by contacting their contact person at the bank or at the post office where they have a current account with the securities deposit account.
The investment can start from a minimum of 1.000 euros, always having the certainty of seeing the requested amount subscribed. The government bond can be purchased at par (price equal to 100) and without commissions during placement days.
Taxes to be paid on the BTP Valore 2024
The usual preferential taxation for government bonds of 12,5% and the exemption from inheritance taxes apply to the Btp Valore. Subscribers, as always, will be able to sell all or part of the security before its maturity, without constraints and at market conditions. The subscribed capital is guaranteed upon maturity. The placement will take place on the MOT platform through two dealer banks: Intesa Sanpaolo. and Unicredit.
