(Finance) – The Ministry of Economy and Finance (MEF) announced that in third quarter 2022 will issue a new 5-year BTP (maturity 01/12/2027)with a minimum amount of the entire issue equal to 10 billion euros. The minimum amount refers to the value that the current securities “must necessarily reach before being replaced by a new issue on the same maturity”, explains the press release with the quarterly program for the issue of government bonds. During the third quarter, additional new securities may also be issued based on financial market conditions, it is added.
Reopening of outstanding securities
Also in the third quarter of 2022 they can also be offered further tranches of the following securities being issued: BTP Short 29/06/2022 – 30/05/2024 with 1.75% coupon; BTP 04/19/2022 – 08/15/2025 with 1.20% coupon; BTP 16/05/2022 – 15/06/2029 with a 2.80% coupon; BTP 03/05/2022 – 01/12/2032 with 2.50% coupon.
Furthermore, in relation to market conditions, the MEF reserves the right to offer further tranches of nominal securities in the process of being issued with a maturity of more than 10 years, CCTeu and inflation indexed also in order to take into account any dislocations on the secondary market of said securities. Finally, the MEF will be able to offer further tranches of medium and long-term securitiesnominal – at fixed and variable rates (CCTeu) – and indexed to inflation, no longer being issued, to ensure the efficiency of the secondary market.
The update on the issue activity
In 2022, until May 31st, the MEF issued medium / long-term government bonds for a total nominal amount of approximately € 123.5 billion. Furthermore, during the same period, the Treasury received the first tranche of the NGEU loan amounting to 11 billion euros. L’funding activitiesin addition to refinancing medium / long-term government bonds maturing for a total amount of approximately 90 billion, it financed the borrowing requirement of the State Sector of approximately 36 billion.
For the rest of the year, the funding activity will have to take into account the maturity of medium / long-term government bonds for a total amount of approximately 145 billion, to which must be added the share of the State Sector Requirement for the next few months. Taking into account the collection of the second tranche of NGEU expected for the next few months and the use of cash available currently in excess of the balance targets at the end of the year, for the remainder of the year, from 1 June to 31 December, the MEF estimates gross issues of medium-term securities – long term amounting to approximately 150 billion.