Btp Italia, new issue in November: how it will work

In the middle of next month, the Ministry of Economy will place a new tranche of the government bond designed to protect savers from the high cost of living by offering an increasing return as of inflation. Retail clients will be able to purchase it from 14 to 16 November while on 17 November it will be dedicated to institutional investors. A loyalty bonus of eight per thousand and a subsidized taxation of 12.5% ​​is expected

After the success achieved in June, the Ministry of Economy and Finance is back on the bond market with the Italian BTP. The new issue of the government bond designed to protect savers from rising prices will take place from 14 to 17 November and will be divided as always into two tranches. An appointment that already promises to spark the interest of citizens thanks to the provision, among other advantages, of a loyalty bonus.

Double purpose

Now in its eighteenth issue since what was conceived in 2012, the Italian BTP looks like a government bond that offers increasing yields as the national inflation rate increases. The tool is therefore designed for a dual purpose: to catalyze the attention of investors thanks to good earning opportunities and to guarantee an important source of support for private savings and protection of the purchasing power of citizens and families precisely in moments, such as that current, in which the high cost of living bites the pockets of citizens.

Technical features

The characteristics of the voucher are the traditional ones, including the subsidized taxation of 12.5%, but with some new features. The bond will have a duration of six years and a loyalty bonus of 8 per thousand is envisaged for those who buy it upon issue and hold it until maturity in 2028. The yields will be linked to national inflation with a minimum rate always guaranteed that it will be communicated on 11 November. Coupon payments will be triggered every six months while the capital will be guaranteed at maturity. No commission for small savers who buy on the days dedicated to them. The minimum purchase price will be one thousand euros.

How to subscribe

Individual savers will be able to subscribe to the Coupon in the first phase of the placement, ie from 14 to 16 November, while on 17 November it will be reserved for institutional investors. The security, as well as in the bank or at the post office where you hold a securities account, can also be purchased on the internet through your home-banking, if enabled for the trading-online function, without therefore going to the branch or at the post offices. The placement will take place on the Mot electronic platform, the electronic market for bonds and government securities of the Italian Stock Exchange, through Intesa Sanpaolo and Unicredit.

A success story

To encourage subscription, the Treasury has published data on previous issues. In terms of the number of contracts, we are at 2,135,459 for a value that exceeds 181 billion euros. Among the most involved are private investors, who from the first edition to the last have increased their share of the total number of buyers from 55.8% to 76.9%.