More than a billion euros in the first hour of collection. A flow that shows no signs of abating. At 12, in fact, the three billion mark was exceeded in less than three hours. At this rate, experts warn, the risk is to do the sold out. Until and including Wednesday, the Treasury will accept all subscriptions, but has reserved the right to close the offer early, which is currently valid until 13pm on Friday. Better not to wait until the last moment if you want to take advantage of the Treasury offer which has many admirers even beyond the border. Confirmation comes from the descent of the spread between Italian securities and the Bund. The range has slipped to 143 points since the early hours of the morning. A remarkable result, if you consider that in September 2022 before the Italian political elections, the gap with respect to the bund had widened to 250 basis points.
A real boom which is probably not unrelated to the appeal of advertising which defines the security as "the safest way to integrate salary and pension", with its quarterly coupons and the "loyalty bonus" for those who keep it until maturity . Without neglecting the other benefits: from facilitated taxation (at 12,5 percent) to the exclusion from the ISEE calculation up to the threshold of 50 thousand euros, a further almost irresistible appeal especially for the middle classes. At this point it is worth recapitalizing the characteristics and strengths of this one The third edition of the Btp Value.
The advantages of the BTP Valore
The title will have a maturity of 6 years (March 5, 2030) and will have a prize final extra of fidelity equal to 0,7% of the invested capital for those who purchase the security during the placement days and will keep it in the portfolio without interruption until maturity.
If rates drop, selling first is a bargain
It is not certain, experts point out, that the most efficient solution is to hold the security until maturity. In the event that market rates fall below the 2% barrier (a possible, if not probable eventuality) the price of the BTP Valore could reserve you like surprises before the age of six.
Double code for the loyalty reward
It should be noted that the ministry has specified that to simplify the recognition of those entitled to the extra final loyalty bonus of 0,7%, the BTP Valore will be assigned a ISIN code “special” and a regular ISIN code; the latter will be the market one, while the "special" ISIN code will be the one that will have the title during the period of placement on the Mot. The "special" ISIN code will be replaced by the regular ISIN code at the time of any sale of the securities on the secondary market starting from the settlement date. Consequently, only holders of securities identified via the "special" Isin code will be paid the extra final loyalty bonus as it will mean that they have never sold the security before the deadline.
The ISIN code of the security during the placement period is IT0005583478.
The coupon increases after the first three years
The BTP Value will have quarterly nominal coupons calculated on the basis of pre-established rates that increase over time (the so-called step-up mechanism). The coupons were calculated based on a given fixed coupon rate for the first 3 years, which increases for the remaining 3 years of the security's life.
The Ministry of Economy and Finance announced that i guaranteed minimum coupon rates are equal to 3,25% for the first three years and 4% for the following three years respectively. The definitive coupon rates will be set at the closing of the placement and can only be confirmed or revised upwards, based on market conditions.
The security is placed at par, without constraints or commissions, and with a price equal to 100 on the market through the Mot electronic platform of the Italian Stock Exchange through the two dealer banks: Intesa Sanpaolo e Unicredit.
The minimum lot is equal to 1.000 euros; the minimum denomination that can be purchased for each order is 1.000 euros and can be purchased upon issue in multiples of 1.000 euros.
At the end of the placement, the definitive coupon rates will be announced which may be confirmed or revised upwards, based on the market conditions on the closing day of the issue.
The risk: rising rates
Every investment involves risk. Buying BTP Value could be a good investment, but take into account the risk of rising interest rates if they rise, the value of government bonds decreases.