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New eight-year Italian treasury bonds to be issued starting on 17 October

The BTP Italia treasury bonds introduced in 2012 by the Public Debt Department as a tool for private savers are back. This is an important innovation in the management of Italian public debt, and allows savers to buy a bond upon issuing - on the regulated Italian stock market for retail investors, the Telematic Bond Market (MOT) – directly online through their own home-banking system if authorized for trading, as opposed to the traditional auction.

This innovation has proved popular over time, as shown by its success, and which is now back with another eight-year bond.

The bonds were first issued on Monday 17 October 2016.

The first phase – from Monday 17 to Wednesday 19 October – was reserved to individual savers and similar investors, while only the morning of 20 October (second phase) was reserved for institutional investors.

No maximum threshold will be applied to small savers and similar clients, thus ensuring that all orders will be fully met, as with all previous issues.

Should the total number of orders be higher than the final supply established by the MEF for institutional investors, allocation measures will be taken.

This issued of BTP Italia bonds will also have a duration of 8 years, with the same widely appreciated financial characteristics:

  • Duration: 8 years
  • Guaranteed minimum real annual yield: 0,35%
  • Six-monthly coupons calculated on the basis of the revalued capital
  • Immediate recovery of inflation thanks to revaluation of capital every six months
  • Guaranteed share capital upon expiry, even in case of deflation
  • Fidelity reward for those who purchase the bonds during the first phase and maintain them until expiry, reserved to individual savers and similar investors.

For information contact the Public Debt Information Group at: dt.gruppo.info@mef.gov.it.

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