The path that will lead already this week, probably tomorrow, to the birth of the new 7-year BTP is starting. The Ministry of the Economy, in fact, has mandated a pool of banks made up of Crédit Agricole Corp. inv. Bank, Credit Suisse Securities (Europe) Ltd, HSBC France and Unicredit Spa, for the inaugural placement, through syndicate.
The structure of the new bond will follow that of the nominal BTPs issued regularly at auction every mid or end of the month: it provides for six-monthly coupons, defined at the time of the bond's launch, and repayment at par.
The Treasury's decision to issue seven-year securities came in the wake of specific market surveys held in recent months, which highlighted the strong intention of investors and issuers on this segment of the interest rate curve.
The inaugural issue will be placed by the banks among the Government Bond Specialists, who will be able to collect orders from professional and qualified investors, to ensure rapid and efficient distribution of the new denomination, immediately guaranteeing good liquidity. Subsequently, the 7-year BTPs will be offered through ordinary auctions.
