Requests exceeding expectations on the first day of placement of Btp Italy, the government bond whose yield is linked to Italian inflation. As announced by the Ministry of the Economy, Monday 6 March closed with requests amounting to 3.637 billion euro. The total of orders, for the BTP Italia linked to inflation, was 132,334.
Inflation, the placement of the Btp Italia continues
The eighteenth edition of the Btp Italy, previous to the one being placed in these days, had closed with a collection of 3.18 billion euros in the first day. A figure that highlights, therefore, the success of this new five-year edition of the BTP Italia.
The first phase of placement reserved for will end on Wednesday small investors. On the other hand, the placement day reserved for institutional investors (pension funds, insurance companies, etc.) is scheduled from Thursday.
Yield of the Btp Italia linked to inflation
The success of the Btp Italia is certainly due to half-yearly coupons that the title guarantees.
At the moment, the minimum coupon is set at 2% (but it could be revised upwards on Thursday) plus an additional yield linked to the trend in Italian inflation, which is currently hovering just below 10%.
Obviously, upon maturity of the security, the capital is repaid, and for those who hold it until maturity – set for March 2028 – a “loyalty bonus” of 8 per thousand is recognized.
Btp Italia, the characteristics of the security linked to inflation
The placement takes place on the MoT platform with Intesa SanPaolo and Unicredit acting as dealers of the operation. Here are the main features of the nineteenth edition of the BTP Italia:
- returns linked to national inflation with a minimum rate set at 2%
- coupons paid every 6 months
- guaranteed capital at maturity
- preferential taxation as for all government bonds at 12.5%
- no commission for small savers who buy on placement days
- guarantee for the retailer to see the entire requested demand satisfied
- minimum purchasable denomination: 1,000 euros
- non-time bound investment
Il rate of inflation the reference for calculating inflation is the FOI index (ISTAT index of consumer prices for blue- and white-collar households, excluding tobacco).
Photo source: ANSA