(Finance) – The second issue of the BTP Valuethe family of government bonds dedicated exclusively to individual and similar savers (the so-called retail market), has reached quota 15 billion euros from the start of the offer. Orders exceeded 2.11 billion euros in fourth day around 3pm with over 80 thousand contracts. These are added to the 12.89 billion euros of the first three days (4.78 billion euros on Monday, 4.54 billion euros on Tuesday and 3.58 billion euros on Wednesday). The placement started on Monday 2 October and will continue until tomorrow, Friday 6 October, unless it closes early.
The novelty of this new issue of the BTP Valore 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). The series was announced on September 29th guaranteed minimum coupon rates: 4.10% for the 1st, 2nd and 3rd year; 4.50% for the 4th and 5th year. At the end of the placement, the definitive coupon rates will be announced 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 and one 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 preferential taxation for government bonds of 12.5% and the exemption from inheritance taxes, coupons and loyalty bonuses apply to the BTP Valore.
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 MOT platform (the electronic market for bonds and government securities of the Italian Stock Exchange) through two dealer banks: Intesa Sanpaolo and Unicredit.