Home » BTP Valore, the Treasury makes the big announcement: here are the minimum guaranteed rates

BTP Valore, the Treasury makes the big announcement: here are the minimum guaranteed rates

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BTP Valore, the Treasury makes the big announcement: here are the minimum guaranteed rates

BTP Valore: the Treasury led by minister Giancarlo Giorgetti made the long-awaited big announcement today, relating to the minimum guaranteed rates of the government bond aimed exclusively at retail investors, which the Mef is preparing to issue again, with the launch of the third edition.

The Ministry of Economy and Finance announces that the series of minimum guaranteed coupon rates for the third issue of the BTP Valore, which will take place from Monday 26 February to Friday 1 March (until 1.00 pm), unless early closure, is the following: 3.25% for the 1st, 2nd and 3rd year; 4% for the 4th, 5th and 6th year”.

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BTP Valore in its third edition: the Treasury announces the minimum guaranteed rates

With the press release issued today the Ministry of Economy and Finance has published the following series of minimum guaranteed coupon rates for the third issue of the BTP Value:

3.25% for the first, second and third year. 4% for the fourth, fifth and sixth years.

“At the end of the placement – ​​added the Mef – 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 ISIN code of the government bond aimed at savers who, during the placement period, it is IT0005583478.

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The third edition of the BTP Valore – launched for the first time in June 2023 by the Meloni government, in line with the strategy presented by the prime minister herself “more BTPs in the hands of Italians” it was communicated by the Ministry of Economy and Finance at the end of January.

The duration, the quarterly coupons and the final loyalty bonus

The new title it will have a duration of six years, coupons paid every three months with pre-established and increasing returns over time based on a 3+3 year ‘step up’ mechanism, as well as an extra final loyalty bonus equal to 0.7 percent for those who purchase it during the placement days and hold it until maturity”.

It should be noted that for step-up mechanismexplains the Treasury itself, means the one in which the coupons paid progressively increase over time.

“For example, suppose a BTP Valore with 2 series of step-up coupons, ‘a-b’: each year it will have its own specific rate according to an increasing progression. For the first x years there will be a rate a, while for the second y years a rate b (with b>a)“.

With regard to the coupons paid quarterly, always the Mef highlighted the difference between the payment of the coupons of the BTP Valore, which occurs every three months, compared to the payment of the coupons that occurs in the case of other Italian government bonds, which instead occurs every six months, specifying that the quarterly coupons of BTP Valore effectively offers the investor “a greater frequency of cash flows”.

For illustrative purposes, let’s suppose we invested 1,000 euros in a BTP Valore with an annual coupon rate of 4%: In the case of semi-annual coupons, each year the investor will receive two coupons, each equal to 2% of the invested capital. In the case of quarterly coupons, however, every year lThe investor will receive four coupons, each equal to 1% of the invested capital.

The issue of the Italian government bond will take place on the Mot (the electronic market for bonds and government securities of the Italian Stock Exchange) next Monday 26 January, continuing until Friday 1 March (until 1pm), unless it closes early.

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The two dealer banks will be Intesa Sanpaolo SpA and UniCredit SpA

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On that occasion, the Treasury had anticipated that today, Friday 23 February 2024, the minimum guaranteed coupons would be announced.

This was the case, in a context in which, it is worth remembering, after the continuous increases in Eurozone interest rates launched by Christine Lagarde’s ECB in the years 2022-2023, the inflation of the Euro area and of Italy they definitely flamed out.

BTP Value: preferential taxation and guaranteed capital at maturity

Coming to everything that savers interested in purchasing need to know, the Treasury highlighted that for the BTP Valore, as for all government bonds, a preferential tax rate of 12.5% ​​is foreseen.

The title Furthermore, it is not subject to inheritance taxesjust as there is no bank commission to be paid by investors who purchase it upon issue.

Subscribers, as always, will be given the opportunity to sell the security in whole or in part before its maturitywithout constraints and at market conditions.

Furthermore, the subscribed capital it is guaranteed upon maturity.

How can the BTP Valore be purchased?

The Treasury has informed that small savers will be able to purchase it 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 and a securities deposit account.

The minimum denomination that can be purchased for each order is 1,000 euros, always having the certainty of having the requested amount subscribed.

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The government bond can be purchased at par (price equal to 100) and without commissions during the placement days.

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(currently being written)

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