The BTP Valore is the government bond dedicated to families and small savers.
Given the good results of the previous editions, such as the extraordinary one which ended on May 10th thanks to which 11,226.556 million euros were raised and 384,295 contracts registered, the Ministry of Economy and Finance has announced a new issue of this security for the end of October, exactly from the 20th to the 24th.
So how does the placement of this security take place, what rules does the Treasury apply, who can purchase it and what happens at the end of this period?
What is BTP Value
Before explaining how the placement of BTP Valore takes place, it is important to understand what the latter is. Well, it is an Italian government bond reserved for retail customers or small savers with the aim of offering them a simple investment alternative and with tax breaks. For it there are nominal coupons that increase over time and a final premium.
From 20 to 24 October 2025, as mentioned, there will be the sixth issue of this security. It will have the following characteristics:
- it will last 7 years;
- it will have increasing coupons paid every month with the 3+2+2 stet-up mechanism;
- it will guarantee an extra final premium of 0.8% of the nominal capital invested for those who purchase it during the placement period and keep it until maturity;
- will offer a guaranteed minimum rate of 2.60% for the first 3 years;
- will offer a guaranteed minimum rate of 3.10% for the 4th and 5th years;
- will offer a guaranteed minimum rate of 4% for the 6th and 7th years.
The minimum investment for this title will be 1,000 euros with no maximum limit and there will be no restrictions or commissions.
Please remember that the definitive coupon rates for all BTPs are announced at the end of the placement and can be confirmed or revised upwards. This is based on market conditions on the day the sale closes.
Btp Valore, how is the placement done?
The BTP Valore was born in the primary market, as it is a new issue. However, it is sold through a platform, namely the Mot of the Italian Stock Exchange: the latter is usually used for secondary market trades but in this case it is used to simplify direct sales to savers.
As for the issuance of this security, it takes place during the placement period, which is usually five business days, unless the closing occurs earlier. During this time period, the credit institutions that join the Mot collect the orders and forward them to the platform by stipulating purchase and sale contracts.
The price in traditional auctions is established based on demand, while that of the BTP Valore is set at par for all (100). The series of coupon rates, however, is defined only on the last day of the placement based on market performance.
As regards the purchase, during the placement period, the security can be purchased online through your home banking service, if enabled for trading, or at the authorized post office or bank.
From the day on which the issue becomes definitive, i.e. from the settlement date found in the official information sheet, the Valore BTPs become negotiable on the Mot secondary market.
What happens after the placement period?
When the placement period ends, the Ministry of Economy and Finance issues an assessment decree which establishes:
- what is the total amount of BTP Valore to be issued;
- the definitive series of coupon rates.
Should the placement of the securities be closed early, this decree will be issued at the beginning of the following day.
Who can buy the BTP during the placement
During the placement phase, individual savers and similar entities can purchase the BTP Valore. More precisely:
- natural persons and therefore all citizens;
- retail subjects or normal savers with the exception of professional or qualified investors;
- portfolio management companies if they manage investment for individuals and retail clients;
- authorized intermediaries who manage individual portfolios on behalf of natural persons and normal savers;
- trust companies that deal with buying and selling securities with customer money, also through fiduciary registration on behalf of natural persons and retail entities.
The intermediary or the person who receives the purchase order (which can take place, as explained, through a bank counter, post office or home banking) has the task of verifying who can actually purchase the Valore BTPs or whether those who invest fall within the categories that are permitted.
How title identification works
To clearly distinguish those who participated in the placement period (i.e. sales for the first time) and are therefore entitled to receive the final loyalty bonus, the Mef uses two ISIN codes, the regular and the special.
Let’s take a closer look at how they work. When BTPs are placed on the Mot of the Italian Stock Exchange, each of them receives a special ISIN code. It serves to identify that the security is purchased directly by the saver in the initial phase.
At the end of the placement period, the BTP can be sold or bought on the secondary market whereby the special code is replaced with the regular one. The latter is what distinguishes the titles that are normally in circulation.
However, only those who own bonds with a special Isin and hold them until maturity and do not sell them before can obtain the extra loyalty bonus.
Can foreign investors participate in the placement?
Foreign individual investors can also participate in the placement of the BTP Valore as long as they respect the rules of their countries.
In this specific circumstance, the verification of the requirements for purchasing the security is always up to the intermediary. However, if there are problems identifying the investor, the latter will not have the opportunity to participate.
Finally, non-Italian investors with residence in our country and therefore with a tax code, as well as Italians residing abroad, will also be able to purchase these government bonds.
What happens in the event of early closure of the placement
In the event that the placement period ends early, the news will be immediately communicated to the market by the Mef and Borsa Italiana and published on the official websites of both entities.
However, as regards purchase orders, they will only be valid if placed while the placement is open. Otherwise, they will not be accepted.
