Press Release N° 205 of 12/22/2011
The Ministry of Economy and Finance disposes on the 28th December 2011 and the settlement 2nd January 2012, issuance of the following Zero Coupon Bond (CTZ):
Issue Date : 30th September 2011 - 7^ tranche
Maturity Date : 30th September 2013
ISIN : IT0004765183
nominal amount at issuance:
from a minimum of 1,500 millions of euro to a maximum of 2,500 millions of euro
Zero Coupon bonds can be subscribed for a minimum amount of 1,000 euro. They are offered through a marginal auction referred to the price, without any initial price reference. The subscription applications under the cut-off price are not taken into consideration.
For the calculation of the cut-off price, the requests whose price is higher than the "maximum acceptable price" are not considered. The maximum acceptable price is calculated in accordance with the issuance decree.
The following subjects are allowed to participate in the auction: Italian, EU and non-EU banks, financial brokers and EU and non-EU investment companies as indicated in each issuance decree. They submit bids for their own property or on their client behalf.
Any bid submitted must contain the reference price. Every dealer can submit a maximum of five bids, which can differ from each other. The minimum bid is 500,000 euro. Any bid inferior to the minimum amount won't be considered. Any bid more than the whole amount offered will be allowed only up to that amount. Bid prices can vary by at least 1 thousandth of euro and different changes will be rounded up.
Dealer's bids are to be transmitted within the deadline described in the following "subscription calendar" to Bank of Italy, using the National Interbanking Network by 11:00 a.m. with the technical modalities indicated by Bank of Italy itself and well-known to the dealers.
Bonds, allotted soon after the auction procedure is over, at the marginal price, that is the last price that can be accepted. If necessary requests at that price will be satisfied proportionately (pro quota apportionment) with the rounding needed. The allotment price and the cut-off one will be disseminated through press release, which will contain also the amount allocated to the Specialists in Government Bonds in the last three auctions.
Authorized dealers will credit the relative amounts in the subscribers accounts without further charging them in respect to the allotment price.
The settlement will be carried out at the allotment price.
The commission, equal to 0.20% of the amount allotted, will be awarded to dealers participating in the auction in order to compensate them for having collected bids from the public.
Everyone can book his requests through authorized dealers; dealers may ask for an advanced amount proportional to that requested to be deposited, in order to have the placement work out properly.
On the settlement date, subscribers will pay up the allotment price. A receipt will testify they have fulfilled this duty.
- Public subscription: Until 27th December 2011;
- Presentation of bids in auction: strictly prior to 11:00 a.m. of the 28th December 2011;
- Settlement Date: 2nd January 2012.
Specialists in Government Bonds are allowed to participate in the additional reopenings which occur after each auction, on the following business day. Those reopenings reserved to the Specialists are set up for an amount equal to 10% of the amount offered.
Only those Specialists who took part in the first auction are allowed to the additional reopenings. The supplementary auction is allocated at the allotment price set in the first auction.
Each issuance decree will set rules for the Specialists to take part in the supplementary auction.