MILAN. P
Debut with a bang for the Btp Valore which on its first day of issue has already collected 5.4 billion euros. This is an important amount that reveals a good reception by savers. Operators’ expectations are now of an overall level of around 10 billion, above expectations. The new bond, which is part of a new family called Btp Valore, is reserved for the retail public only. This new instrument will have a duration of 4 years and will be offered until Friday, unless it is closed early. Here are the key features.
The growing coupon
How much will the profit be? With the growing coupon and the loyalty bonus, the gross annual yield of the first Btp Valore will reach 3.74%. On the secondary market, a Btp with the same maturity yielded around 3.46% on Friday.
There bonus
«The final bonus of 0.5% is designed to reward the “drawers” who hold the stock until expiry – explains Stefano Gianti, analyst at Swissquote -. The logic of the Btp Valore is precisely to ensure that the share of retail investors among the buyers of Italian debt increases. Increasing the share of public debt held within the country increases the perception of debt sustainability”. For this reason, this time the Treasury is offering a loyalty bonus that is more generous than the levels offered in the past (0.08%). «Focusing on “drawer holders” who hold the security until maturity could, however, make the security less liquid on the secondary market» warns the expert.
Facilitated taxation
There are other benefits too. The Btp Valore offers a preferential taxation which, as for other government bonds, is 12.5% on interest, against 26% for other financial instruments. In addition, there is an exemption from inheritance taxes. The minimum investment is suitable for small portfolios (1,000 euros) and there are no bank commissions for buying on issue.
Purchases
The bond will be placed at par and with a price equal to 100 on the market through the MOT electronic platform of Borsa Italiana through two dealer banks: Intesa Sanpaolo and Unicredit.