TURIN. Savers traumatized by inflation will be able to return to take refuge in the Btp Italia which protect them from the race in prices. In less than a month, between Monday 6 and Thursday 9 March, a new issue of government bonds indexed to the national cost of living and tailor-made for individual savers will take place, although the placement is also open to institutional ones.
The new BTP Italia will have a duration of 5 years and it is envisaged that a loyalty bonus of 8 per thousand will be linked to it for those who purchase the bond upon issue and will hold it until its expiry, on 14 March 2028.
The Ministry of Economy and Finance aims to replicate the good results of past editions and to do so it offers a product in line with the characteristics of the previous issues: long duration, loyalty bonus and protection from inflation which erodes savings, if placed in fixed rate bonds. The Treasury wants to consolidate a share of drawers oriented not to get rid of Italian government bonds soon, not to buy and sell, and to keep the bonds in their portfolio even in the event of a swell on the markets and a sharp rise in the spread; in such contingencies, the collective tendency to keep the Btp Italia will preserve the market value of these bonds, as has been seen in the past, when they have undergone less violent fluctuations than other government bonds. The latest issue last November closed with funding that came close to 12 billion euro, attracting the interest above all of small savers: households totaled subscriptions for over 7.2 billion euro (the rest went to institutional investors, i.e. mutual funds, pension funds, insurance companies, etc.). In November, the participation of “retail” was the second ever – with purchases by 256,000 savers – behind the record issue of 2020, which was intended to finance the measures to combat the Covid pandemic. The only contraindication to Italy’s BTPs is the risk of losing capital and interest in the hypothesis (though considered school) of insolvency of the Italian state.
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As usual, the security will be placed on the market in two stages: the first will take place from Monday 6 to Wednesday 8 March, unless closed early, and will be reserved for individual savers; all requests received will be satisfied, without limit. The second phase will take place in the morning of March 9 and will be reserved for institutional investors. The minimum guaranteed rates will be communicated on Friday 3 March and inflation will be added to these; the adjustment to the price rush will take place with semi-annual coupons.
As with the previous issues, retail savers will be able to subscribe to the Btp Italia wherever they hold a securities account, at a bank or post office or using their own home banking if enabled for trading functions.