The Ministry of Economy announced that from Monday 15 May until Thursday 18 May the Btp Italia will be issued, the government bond indexed to Italy's inflation rate.
Unlike previous releases, the duration of the BTPs will be six years (until 2023). The longer time horizon of the latest editions - 8 years - was of less interest to investors: investing savings for so long puts interest rates at risk, despite the capital being guaranteed at maturity.
Le coupons of the Btp Italia will be half-yearly and indexed to the Foi inflation index (linked to the ISTAT index of consumer prices for families of workers and office workers). The securities that will be issued insure against the risk of deflation, given that in this case the coupons actually paid will not be less than definitive guaranteed real rate, which will be specified on May 12. The risk of deflation is however mitigated by the recovery in prices: in Italy, in April, the cost of living rose to its highest level in the last four years, + 1,8 %.
- analysts evaluate the Btp Italia positively, being the only title that provides a loyalty bonus for those who carry it until expiry.
However, it will not change placement method. The Treasury will use the electronic platform Word of the Italian Stock Exchange. The issue will be purchasable both in the bank and via home banking.
Two phases are foreseen: the first – 15 – 17 May – dedicated to small savers and individuals (whose demand will be fully satisfied without any ceiling), the second – morning of May 18 – will instead be reserved for institutional investors, for which the possibility of an allotment is envisaged if the orders are higher than the offer established by the Treasury.
