The Ministry of Economy has published the details of Two new BTP emissions: one duration of 7 years and the other expiring a 30 yearslinked to inflation. The first, with fixed coupon, expires in 2032; The second, designed to protect capital from the increase in prices, reaches until 2056.
Both have been placed through a consortium of large international financial institutions. The data show a very high adhesion, especially by foreign investors: a strong signal for the government bond market.
Both were placed through one union procedure which involved six major international banks as lead manager: Bilbao Vizcaya Argentaria, Bank of America Securities Europe, Goldman Sachs Bank Europe, JP Morgan, Natixis and Société Générale Investment Banking. All the other specialists in Italian government bonds, with the role of Co-Lead Manager.
BTP 7 years with 3.25%rate: what to know about 8 billion emission
The first tranche concerns a public title with Descase set for July 15, 2032. The placementthat the April 25thprovides for an annual coupon of 3.25%, distributed in two half -yearly payments. The total amount collected is 8 billion euros. The price established at the time of the issue was 99.974, corresponding to a gross annual yield equal to 3.281%.
The ISIN code of the title is IT0005647265. The first payment of interest will be made on July 15, 2025, with an amount calculated on 81 days and equal to 0.72721% gross. From that moment on, The coupons will be paid regularly every six monthsJanuary 15 and July 15. The application by the investors was remarkable: about 50.6 billion euros, in the face of the 8 billion actually assigned.
This emission comes in a period in which The rates are stabilizingafter weeks marked by strong oscillations. On the market, titles with similar characteristics offer returns in line with what is proposed. Once the taxes are considered, the net profit for those who buy is approaching 2.90% per year.
A level that can be interesting for those looking for a medium -term solution, also suitable for small savers and families. Expectations on inflation for the next few years remain quite low: around 1.20% on an annual basis. This means that, net of the loss of purchasing power, the actual return could exceed 1.60% real.
New BTP indexed to inflation 2056: performance, demand and technical details
The second instrument presented by the Treasury is aBond with thirty years of durationdesigned for those who want to protect their savings from the increase in prices. Its deadline is set for May 15, 2056, while the entry into force is scheduled for November 15, 2024. The gross annual rate recognized is 2.55%, divided into two coupons per year. The issue collected 3 billion euros, with a placement price of 99.268, for an annual gross return of 2.601%.
The BTP title, characterized by the ISIN IT0005647273 code, attracted a strong interest from investorswith requests for over 53 billion euros. As established by the Ministry, the coefficient that regulates the adaptation to inflation is equal to 1.00335. Currently, the Italian title of state with a longer duration in this category is the one expiring May 2051, which offers a coupon of 0.15% (Isin IT0005436701).
Compared to traditional bonds with similar deadlines, which make up to 4.20% but do not protect from the increase in prices, this tool guarantees a real return which is around 2.30%. A figure that reflects the estimate, shared by the markets, of growth in the long -term eurozone less than 2%, i.e. under the reference parameter set by the European Central Bank.
When regulation and updates on demand and allocation take place
The formal completion of the operation is set for the April 25. On that date the regulation of the two emissions will be perfected. The Ministry of Economy will make the detailed data on the composition of the application known through a subsequent note.
According to what has already been communicated, The total interest exceeded 103.7 billion eurosa figure that testifies to a very high adhesion by the market, especially the foreign one.
Following the success found, the Treasury decided not to proceed with the auction scheduled for April 24 relating to the indexed title, considering it no longer necessary.
