The BTP Valore is confirmed a patriotic BTP to all intents and purposes: this is what emerges from the details that the Treasury (Mef-Ministry of Economy and Finance) has pitted.
Italian small savers and retail investors they accepted the appeal of the Meloni government and of the Prime Minister, Giorgia Meloni above all, ‘more government bonds in the hands of Italians’: un appeal that had caused much discussion, igniting the debate in the world of politics and, also, between various economists and experts of public debt made in Italy.
Let’s get to the results: as anticipated last Friday, the total amount subscribed was more than 18 billion euros, to be precise equal to “18,191.090 million euros, against 654,675 contracts concluded”-
The average denomination of the contract amounted to 27,786 euros.
The Treasury, in communicating the outcome of the first issue of the BTP Valore, a government bond aimed exclusively at the audience of retail investors, announced that it was the “highest result ever in terms of value subscribed, but also in terms of number of contracts registered, in a single placement of government bonds for small savers (retail)”.
There was great attention from investors and citizens for the outcome of the BTP Valore issue, a test bed for the Meloni government to test the interest of Italian savers in participate to a greater extent in the Italian public debt.
So much so that, at the end of last year, there was also clear talk of autarkic BTP or sovereign BTPreferring to the goal, which the Meloni government has never made a secret of, to place more government bonds in the hands of Italians.
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Final annual rates
The BTP Valore was issued for the first time last week. The emission has started last Monday, June 9th, ending on Friday June 9th.
Last Friday, after the closure of the issue, the Treasury released the final result, also announcing the guaranteed minimum coupon rates.
No change from coupon rates which had been announced on 1 June, a few days before the start of the first issue of the BTP Valore.
The announced final annual rates have been confirmed 3.25% for the 1st and 2nd year and 4.00% for the 3rd and 4th year.
In today’s note, the Mef specified, referring to the contracts that were signed by small savers and retail investors that, of the 654,675 contracts concluded on the MOT (the Telematic Market of Bonds and Government Securities of Borsa Italiana), 66 percent was for an amount of less than 20,000 euros while, considering all contracts for amounts up to 50,000 euros, the share was equal to 92% of the total.
In a table, the Treasury reported the number of contracts signed and the relative valuefor each day of the issuance of the BTP Valore.
Again, the Treasury disclosed that, from information collected from Dealers, Co-Dealers and other intermediaries, it emerged that the participation of retail investors was significantly higher than that of private banking (with a share of 76 per cent and 24 per cent, respectively).
With regard to the way in which the purchase of the BTP Valore took place, taking into consideration the share subscribed by retail investors, the MEF said it estimated that “around 64 percent forwarded the order through the branches of the banking networks and post offices (both by physically going to the branch and remotely), while about 36 percent through home banking”.
BTP Value: 99% orders from domestic investors
Giorgia Meloni’s appeal was certainly accepted: in fact, the Mef communicated that, as regards the geographical distribution of the orders received, “almost all the orders came from domestic investors (about 99 per cent)”.
Right from the start, the issuance of the BTP Valore beat that of the BTP Italy to be precise the 19th issue of the BTP Italia, which had also gone very well, and which had been launched by the Treasury at the beginning of March.
Just consider that, on the first day of issue of the BTP Italia, there were 132,334 orders, for a value of 3.637 billion euro. The table summarizing the subscriptions of the BTP Valore confirms how the orders for the security, on June 5th, exceeded instead the threshold of 180,000 units, for a value exceeding 5.4 billion euros.
The second day of subscriptions of the BTP value ended at about the same pace as the first, with requests for a higher value still at 5 billion euros.
Added to that of the first day, the collection of the BTP Valore of the first two days was thus confirmed immediately higher than that of the BTP Italia, which among other things, was over 9.91 billion including the contribution of institutional investors which, in the case of the BTP Valore, were instead lacking, due to the nature of the government bond, aimed exclusively at retail investor audience.
BTP value: satisfaction from Meloni and Salvini. Much better than Mes
In the first days of the issue of the title, satisfaction was evident Prime Minister Giorgia Meloni for the outcome of the placement:
Meloni yes taking revenge, especiallyabout the hedge fund industry and who he had bet against Italy and its BTPs.
Satisfaction was also expressed by the Deputy Prime Minister, leader of the League and Minister of Transport and Infrastructure Matteo Salvini who, speaking over the weekend at the Forum in the Manduria farm (Taranto), expressed himself as follows:
“The issuance of treasury bills Value, public savings record with hundreds of thousands of savers involved, it is an index of the trust that Italians have in their own country: Italians have put in over 18 billion cash in five days”.
BTP Valore definitely better than the Mes, he underlined again the leader of the League:
“Will we never subscribe to the Mes? Mai is not in my vocabulary, but the Mes is not useful, it is not convenient”said Salvini, adding that “at the moment there is certainly a revision of the rules relating to the Stability Pact”.
And in any case, turning to Europe, the minister expressed himself as follows:
“You don’t review the Stability Pact the way I like it and in return I’ll sign you the Mes, an instrument in which I do not believe”.