After the successful placement of the Btp Valore, the Ministry of Economy and Finance has announced the next issue of a new BTP Green, intended to finance expenses related to the energy transition, the climate and the environment, and having entrusted its placement to a group of banks. THE new title has expires October 30, 2037.
Syndicated placement
The Mef has entrusted the placement to a pool of banksincluding BNP Paribas, Crédit Agricole Corp. Inv. Bank, Deutsche Bank AG, NatWest Markets NV and UniCredit SpA.
The placement in the consortium is entrusted to a union, i.e. to an association of banks, which guarantee the MEF can reach a wider audience of recipients. The placement consortium essentially allows you to contact all potential buyers of securities and fulfills the function of specialized consultant on the methods and times of issuance
What are Green BTPs
Green BTPs are Italian government bonds whose proceeds are intended for financing of initiatives charged to the state budget (tax incentives and expenses) with environmentally sustainable consequences.
The related “Reference framework for the issuance of Green Government bonds” was published on 25 February 2021 and defines the financed environmental categoriesin coherence with both the 6 environmental objectives outlined by the European Taxonomy of sustainable activities and with the Sustainable Development Goals (UN SDGs).
The Framework therefore provides a division into six categories and includes: Renewable sources for the production of electrical and thermal energy, Energy efficiency, Transport, Prevention and control of pollution and circular economy, Protection of the environment and biological diversity, Research.
Which expenses will be financed
The size of the expense portfolio from which to draw for all 2024 issues, including the reopening of the 2031 BTP Green at auction in March 2024, are within a range between 11.5 and 13.5 billion euroswith an indicative distribution between the 6 categories contemplated in the Reference Framework as highlighted below.
There distribution of the expected expenses between the various categories it’s the following: Renewables for energy production electrical and thermal (approximately 1% of the total cost), Energy efficiency (between 8% and 53%), Transport (between 27% and 33%), Pollution prevention and control and circular economy (7.5% – 8.5%), Protection of the environment and diversity organic (6.5% – 8.5%), Research (4% – 5%).
The frequency of expenses will be spread over a time horizon represented by a four-year periodincluding the current year and the three previous years, but the relative weight is mostly concentrated on expenses incurred during 2023 and 2024, with a indicative distribution illustrated in the following table: 0.4% of the total amount in 2021, 3.5% – 4.5% in 2022, 42%-46% in 2023 and 44%-48% in 2024.
