(Finance) – Positive start for the second issue of the BTP Valore, the family of government bonds dedicated exclusively to individual and similar savers (the so-called retail market). Orders have exceeded the 1 billion euro mark at 10:19, with over 34 thousand contracts. The placement started this morning, Monday 2 October, and will continue until Friday 6 October.
There novelty of this new issue of the BTP Value is that, for the first time with a government bond, savers will receive quarterly coupons which will be calculated on the basis of pre-established and increasing rates over time (the so-called step-up mechanism). On 29 September the series of minimum guaranteed coupon rates was communicated: 4.10% for the 1st, 2nd and 3rd year; 4.50% for the 4th and 5th year. At the end of the placement, i. will be announced definitive coupon rates which may be confirmed or revised, but only upwards, based on the market conditions on the closing day of the issue.
The title has a duration of 5 years it’s a extra final loyalty bonus equal to 0.5% of the invested capital for those who purchase it during the placement days and hold it until maturity.
The investment can start from a minimum of 1,000 euros, always having the certainty of seeing the requested amount subscribed. The government bond can be purchased at par (price equal to 100) and without commissions during the placement days. The usual applies to BTP Valore preferential taxation for government bonds equal to 12.5% and exemption from inheritance taxes, on coupons and loyalty bonus.
As with the previous issue, the BTP Valore can be purchased exclusively by small savers through their home banking, if enabled for online trading functions, or by contacting their contact person at the bank or post office where they have a current account and the securities deposit account. The placement takes place on the MOT platform (the electronic market for bonds and government securities of the Italian Stock Exchange) through two dealer banks: Intesa Sanpaolo And Unicredit.