The security will pay coupons every quarter and will have a final extra loyalty premium equal to 0.8% of the invested capital
The Ministry of Economy and Finance has communicated the characteristics of the fourth issue of the BTP Value, the government bond dedicated exclusively to small savers (retail). The BTP will be placed from Monday 6 May 2024 to Friday 10 May (until 1.00 pm).
In line with the previous placement of February-March 2024the title will pay coupons every quarter.
In detail, the fourth BTP Valore will have a maturity of 6 years (May 2030) and will have an extra final loyalty bonus equal to 0.8% of the invested capital for those who purchase the security during the placement days and will keep it in their portfolio without interruption until maturity.
In the FAQ published on the website of the Treasury Department, the MEF specified that to simplify the recognition of those entitled to the extra final loyalty bonus of 0.8%, the BTP Valore will be assigned a “special” ISIN code and a regular ISIN code; the latter will be the market one, while the “special” ISIN code will be the one that the security will have 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 means that they have never sold the security before expiry.
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 guaranteed minimum rates in the first three years and in the following three years, together with the ISIN code that identifies the security, they will come communicated on Friday 3 May.
The security will be 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 two dealer banks: IntesaSanpaolo and UniCredit.
BTPs with a value of May 2030 have a minimum lot of 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.
No maximum limit will be applied insuring the complete satisfaction with orderssafe faculty of the Ministry to close the issue early.
Also in the FAQ, the MEF specified that the investor is not allowed to withdraw from BTP Valore purchase orders placed online and off-site.
The usual preferential taxation on government bonds of 12.5% will continue to apply to the performance of the security. and exemption from inheritance taxes as for other multi-year treasury bonds.
In the FAQs, the MEF recalled that the latest budget law excluded government bonds and other state-guaranteed financial products, up to a maximum limit of 50 thousand euros in total, from theISEE indicator. Consequentially, the BTP Valore will also be excluded from the economic-financial situation indicatorwithin the limits indicated and with reference to the nominal value held by the security and other financial products guaranteed by the State.
The MEF specified that it will be possible to exclude the BTP Value May 2030 from the calculation of the current ISEE from 2025 and from the calculation of the ordinary ISEE from 2026with the completion of the implementation process of the measure which has been started and will conclude soon with the issuing of amendments to the specific Prime Ministerial Decree.
Table – The main characteristics of the BTP Value May 2030
| BTP FEATURES VALUE MAY 2030 | |
| Issuer | Italian Republic (Treasury) |
| Issuer rating | S&P: BBB (stable) |
| Moody’s: Baa3 (stable) | |
| Fitch: BBB (stable) | |
| DBRS: BBB high (stable) | |
| Scope: BBB+ (stable) | |
| Listing market | MOT (Italian Stock Exchange) |
| Duration | 6 years (expires 14 May 2030) |
| Subjects who can participate in the placement | Individual savers and similar |
| Minimum purchasable denomination | 1,000 euros |
| Minimum lot | 1,000 euros |
| Loyalty reward | 8 per thousand gross for those who purchase the security under placement |
| ISIN code (under placement) | To be defined |
| Gross annual coupon (minimum) | To be defined |
| Coupon characteristics | Step up |
| Coupon assignment | Quarterly |
| Repayment of capital | In a single solution expiring at the nominal value |
| Issue price | 100 (even money) |
| Purchase methods | Through the bank where the securities dossier is held (via the counter or via home banking) or through the post offices |
| Dealers and co-dealers | IntesaSanpaolo (dealer) |
| UniCredit (dealer) | |
| Banca Akros (co-dealer) | |
| Banca Sella Holding | |
| Fees paid by investors | None |
| MOT trading fees | Set at the discretion of the banks participating in the MOT. |
| Tax regime | 12.5% as for government bonds |
(Source MEF, SoldiOnline processing)
Table – The BTP placement calendar. Value May 2030
| BTP PLACEMENT CALENDAR VALUE MAY 2030 | |
| Announcement of the series of guaranteed minimum rates and ISIN code | Friday 3 May 2024 |
| Start of offer for individual savers | Monday 6 May 2024 – 09.00 am |
| Offer deadline | Friday 10 May 2024 – 1.00 pm (unless early closing, which can in any case take place no earlier than 5.30pm on May 8th) |
| Fixation of the coupon and amount | At the end of the placement period (in case of early closure the indications will be communicated at the opening of the following day) |
| Enjoyment and regulation | Tuesday 14 May 2024 |
| First day of free trading on MOT | Tuesday 14 May 2024 |
(Source MEF, SoldiOnline processing)
Here is how the previous three placements of BTP Valore went:
The Ministry of Economy and Finance recalled that as at 31 March 2024, BTP Valore were in circulation for a total amount of 53.7 billion eurosequal to 2.2% of the total amount of government bonds in circulation on the same date (2,436.34 billion euros).
