comes the government bond that protects savings from inflation

New BTP Italia issues are expected on 6 March. Let’s find out everything there is to know about inflation-linked government bonds.

A new issue of BTP Italia is expected on 6 March 2023. It is a government bond indexed to the national inflation rate, which aims to protect the individual saver’s capital.

For the moment, the definitive coupon is not known, which will be established with a subsequent communication on Thursday 9 March. But there is information about the minimum annual real coupon.

Let’s find out everything there is to know about the new ones BTP Italia issues in March 2023.

New BTP Italia issue: how it works

The new BTP Italia issue, that of 6 March 2023, will be the nineteenth. As announced by the Ministry of Economy and Finance the real annual coupon minimum will be set at 2%. It will then be necessary to wait for Thursday 9 March to know the definitive coupon value. On this occasion, in fact, the aforementioned coupon will be communicated and may be confirmed or revised upwards with respect to the real coupon.

The BTP in question is a government bond indexed to the inflation rate Italian. Those who manage to grab the aforementioned title will receive a semi-annual coupon together with capital appreciation, based on the FOI index.

The new issue includes a first phase of placement, which will be dedicated to individual savers and will take place on Monday 6 March. The first phase will last until Wednesday 8 March, it being understood that it is possible that a early closing. On this occasion, it is necessary to remember that the Isin code of the security will be IT0005532715.

It will then be scheduled a second stage which will be dedicated to institutional investors: it will take place Thursday 9 March from 10:00 to 12:00. The aforesaid issue will take place on the electronic bond and government securities market of the Italian stock exchange (MOT) and will make use of the collaboration of Intesa Sanpaolo, Unicredit, Banca Akros Spa and Credit Agricol.

Features of the new issue

The new BTP Italia issue of 6 March 2023 is the first to occur during a phase in which inflation is on the rise. In fact, during the month of February the national consumer price index did register an increase of 0.3 percentage points, on a monthly basis. While on an annual basis an increase of 9.2 percentage points was recorded. Although the figures may seem high, in reality there has been a drop compared to the previous month, when the national consumer price index recorded a plus 10%.

Anyway, with the purpose of help savers to protect the price of the capital, the new issue will provide for the recognition of the half-yearly revaluation of the subscribed capital.

In this way, the investor will be able to recover the loss of purchasing power that occurred in that period of time. Also, thanks to the payment of coupons the saver will be able to obtain a minimum and constant return in real terms.