BTP Valore, the Treasury announces the final rates and results. Record-breaking retail collection
The first issue of the BTP Valore, as it emerged from the first days of subscription of the new Italian government bond offered by the Mef exclusively to small savers and investorsended successfully.
the placement, which started on Monday 5 June and ended today, Friday 9 June, it allowed the Treasury to collect from retail an amount exceeding 18 billion euros, to be precise equal to 18,191.090 million euros.
The final results of the issuance of the BTP Valore were released on the very day when savings, public debt, inflation and spreads spoke Paolo Savona, president of Consobon the occasion of the Commission’s annual meeting with the financial market.
Speaking of public debt, it must be said that the former minister of M5S-League government, who could be considered in a certain sense among the ‘founding fathers’ of the project sovereign BTP or even autarkic BTP – project from which the BTP Valore was inspired – he dwelled on the need for a lender of last resort to protect the BTPs from financial speculation.
“The need for a lender of last resort to avoid tensions on BTPs ‘it shouldn’t be new – said Savona, according to what was reported by the Radiocor news agency – because I have been supporting this thesis for a lifetime. When Mario Draghi exercised this function, from 2012, things went well ”.
Savona underlined the need for “find a mechanism that gives the market the certainty that public debts will not be abandoned”.
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BTP Valore, Mef: highest result ever in terms of value and contracts
In the note with which the Mef communicated the final result of the issuewe read that the collection was the highest ever, both in terms of value subscribed and by number of contracts registered, for each government bond issued so far and aimed at the public small investors, the retailers.
Mission Accomplished, for now, for the Meloni government, which had not hidden for some time the plan to lock down the Italian public debt, now orphan of the crutch of the ECB, drawing on the substantial savings of the Italians, parked in bank current accounts without the possibility of large remunerations, and at the mercy of the constant erosion of liquidity that the still high inflation continues to implement.
BTP Valore: the Treasury announces definitive rates
“It’s about the highest result ever in terms of value subscribed, but also in terms of number of contracts registered654,675, in a single placement of government bonds for small savers (retail), to which the BTP Valore is exclusively addressed”, reads the note from the Treasury, which today also made the great and eagerly awaited announcement definitive annual rates.
No change from guaranteed minimum coupon rates which were announced on 1 June, a few days before the start of the first issue.
The definitive annual rates announced are like this equal to 3.25% for the 1st and 2nd year and 4.00% for the 3rd and 4th year.
Giorgetti’s Mef recalled the final extra loyalty bonus of 0.5%which will be paid only to those subscribers who keep the BTP Valore for the entire duration of the four years.
The amount issued – concluded the note from the Mef – coincides with the total value of the purchase contracts validly concluded at par on the MOT (the Telematic Market of Bonds and Government Securities of Borsa Italiana) in the five placement days, through the two dealer banks Intesa Sanpaolo SpA and Unicredit SpA and the support of the two co-dealer banks Banca Akros SpA and Banca Sella Holding SpA”.
BTP Italia was immediately beaten
The retail fever, for this government bond which was issued with the clear intention, confirmed by the Prime Minister Giorgia Meloni herself, to entice small savers to participate to a greater extent in the Italy’s public debtexploded immediately, and then faded in the last two of the total four days of the issue.
On the first day of subscription of the BTP Valore, Monday June 5, concluded with orders worth €5.45 billion, with more than 180,000 contracts.
The numbers they had characterized were immediately beaten the 19th issue of the BTP Italia, which had gone very well.
In fact, on the first day of issue at the beginning of March, the BTP Italia, a government bond linked to inflation, had received 132,334 orders, for a countervalue of 3.637 billion euro.
The second day of subscriptions of the BTP value ended at the same pace as the first, with requests worth 5.195 billion.
Added to that of the first day, the collection of the BTP Valore of the first two days was confirmed immediately better than that of the BTP Italia which, it is worth remembering, was confirmed to be higher than 9.91 billion thanks, in part, to the contribution of institutional investors.
Prime Minister Giorgia Meloni has not hidden her satisfaction in recent days, taking revenge, in particular, against the hedge fund industry and who had bet against Italy and its BTPs.
The third day of placement for the Btp Valore ended with lower numbers, with 152,459 contracts signed for a total of 4.22 billion, thus bringing the total value of funding to 14.8 billion euro.
Yesterday, fourth day of subscriptionsthe Treasury collected orders for an even lower value, of more than 2.22 billion euros, with 86,787 contracts signed.
Today, fifth and last day, the Mef collected a collection of 1.125 billion euros with 38,000 contracts signed.
Summing up, the Treasury has nevertheless collected, with this first issue of the BTP Valore, more than 18 billion euros. And it won’t end there, since it was the same Davide Iacovoni, Head of Public Debt at the MEF, to confirm the Treasury’s plan aimed at blocking the state coffers by continuing to court the rich savings of Italians.
Saving actually no longer so rich, at least if you refer to liquidity that the Italians have parked in the banks.
Just in the last hours, the FABI, the banking union in Italy, announced in fact that, in the period between December 2021 and March 2023, the current account balance it fell by more than 61 billion euros, from 2,076 billion to 2,015 billion. And that in the three years between December 2022 and March 2023, the negative change was more than 50 billion.
Blame it on inflation and the series of rate hikes launched by Christine Lagarde’s ECB to try to counter it.