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Btp Valore, what it is and how it works for small savers

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Btp Valore, what it is and how it works for small savers

MILAN. The new Btp Valore is being prepared on the launch pad. Designed for small savers, it will see its first debut in June: from Monday 5th to Friday 9th (until 1pm). This is what was announced by the Ministry of the Economy and Finance which, with this instrument, inaugurates a new family of government bonds that is dedicated exclusively to small portfolios. The main feature concerns the rate which will grow more and more over the years. To find out how much this new title will pay, it will be necessary to wait for 1 June, the day in which the level will be officially communicated, based on the current market trend. To get an idea, this morning the 5-year maturities of traditional BTPs offer a gross yield of 3.618% while the 10-year term is at 4.189% with the BTP/Bund spread at 189 points.

More specifically, the first Btp Valore will have a duration of 4 years and a loyalty bonus for savers who will hold it until maturity. The coupons will be periodic and calculated on the basis of pre-established rates that increase over time.

There are no caps or distributions on the issuance, while the methods of subscription have been simplified compared to traditional auctions. The Btp Valore can in fact be purchased exclusively by small retail savers – without commissions, starting from a minimum investment of 1,000 euros and always having the certainty of seeing the requested amount subscribed – by contacting your contact person at the bank or at the post office at which you have a securities account or through your own home banking, if enabled for online trading functions.

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Also for the Btp Valore, the usual preferential taxation for government bonds equal to 12.5% ​​and the exemption from inheritance taxes, coupons and loyalty bonuses are applied to the yield. Furthermore, as always, it will be possible for subscribers to sell all or part of the security before expiry.

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