orders sustained before the rate cut

Good start for the fourth issue of Btp Value, the family of government bonds reserved exclusively for individual and similar savers (retail). In the first half hour of trading, orders were approximately equal to 360 million euros, with investors looking to take advantage of the last window before the European Central Bank's expected rate cut. The issue began today, Monday 6 May, and will continue until Friday 10 May (at 1pm), unless it closes early.

Btp Valore at the start

Launched last year, the Btp Value it raised a total of 53.7 billion euros. Last February, again with a six-year BTP Valore, the Treasury raised 18.32 billion euros, while in the October 2023 edition (maturity 5 years) it stopped at 17.19 billion euros and in the first ( maturity 4 years) had settled at 18.19 billion euros.

This issue has duration of six years, coupons paid every three months with pre-established returns that increase over time based on a 3+3 year “step up” mechanism. The final extra premium will be 0.8% for those who purchase it during the placement days and hold it until maturity.

Orders sustained before rate cut

The investment can start from a minimum of 1,000 euros, always having the certainty of having the requested amount subscribed. The security is purchased at par (price equal to 100) and without commissions during the placement days. The minimum guaranteed rates are:

  • 3.35% for the 1st, 2nd and 3rd year;
  • 3.90% for the 4th, 5th and 6th year.

At the end of the placement, the definitive coupon rates will be announced which may be confirmed or revised upwards, based on the market conditions on the closing day of the issue.

The BTP Valore can be purchased exclusively fromthe small savers through your home banking, if enabled for online trading functions, or by contacting your contact person at the bank or post office where you have a current account with the securities deposit account. The placement takes place on the MOT platform (the electronic market for bonds and government securities of the Italian Stock Exchange) through two dealer banks: Intesa Sanpaolo and UniCredit.

The usual is expected preferential taxation for all government bonds at 12.5% on coupons and loyalty bonus, and exemption from inheritance taxes.