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Ministry of Economy and FinanceISSUE OF BTPs (Long Term Treasury Bonds)

Press Release N° 199 of 08/06/2008

The MEF announces the issuance of the following treasury bonds, to be auctioned on 13 August 2008 and settled on 18 August 2008:

- five-year

start date: 15 April 2008; seventh tranche

maturity: 15 April 2013

coupon: 4.25%

The bonds mentioned above can be subscribed in minimum lots of one-thousand euro; the issue takes place through the uniform-price (marginal) auction mechanism, without any indication of the minimum price and without considering bids submitted at prices below the "exclusion price." To set the exclusion price, bids submitted at prices exceeding the "maximum accepted price" - as calculated in the issuance decree - will not be considered.

Italian, EU and non EU banks as well as the brokerage companies and EU and non-EU investment businesses referred to in the decrees authorising the issuance of the above mentioned bonds are eligible to participate in the auction.

The dealers referred to above may bid on their own account or on behalf of third parties.

Each bid submitted must state the relevant offer price. Each dealer may submit up to a maximum of three bids, each at a different price and for a minimum amount of 500,000 euro of nominal capital; any bid below the minimum amount will not be considered. Each bid must not exceed the issuance amount; any bids in excess of the issuance amount will be admitted only up to that amount.

Stated prices will vary by a minimum of one euro cent; variations of a different amount will be rounded upwards.

Bids from dealers must be submitted by the deadlines set down in the calendar here below and by means of electronic bid sent to the Banca d'Italia via the National Interbanking Network in accordance with the technical procedures established by the Banca d'Italia and familiar to dealers.

On the day that auction operations are finalised, the bonds will be allocated at the lowest price among those offered by the remaining allottees.

In the event that not all bids can be accepted at the uniform price, allocation will be on a pro-quota basis, with rounding off as required.

The allotment price and the exclusion price will be communicated through a press release that will also provide information concerning the amounts allocated to "specialists" during the last three auctions.

Dealers participating in the auction shall arrange for the bonds allocated to be assigned to subscribers, without charging further amounts on top of the allotment price.

Settlement of the bonds allocated by dealers will be at the allotment price and with payment of daily interest from the day following the accrual date of the bonds to the settlement date.

As payment for collecting bids from the public, commission shall be paid to the said dealers, commensurate with the nominal amount of bonds allocated, equal to 0.30%.

The public shall be able to reserve bonds via the above mentioned groups of dealers by the deadline set down in the calendar; brokers shall be able to request a payment on account of the nominal amount reserved as security for completion of subscription.

On the settlement date, subscribers shall pay the sum due for the bonds allocated, on the basis of the allotment price, as well as daily interest due. A receipt will be issued on payment.

The calendar for subscription operations is as follows:

Five-year BTPs

Public to reserve by

12 August 2008

Submission of bids to auction: by 11.00am on

13 August 2008

Settlement of subscriptions

18 August 2008

Daily interest payable

125 days

State bond specialist dealers are eligible to participate in the placing of state bonds that shall take place automatically in addition to the issuance auction.

The additional auction will be held at 3:30 pm on the same day, 13 August 2008.

The offer of the additional tranche is fixed for a maximum amount not exceeding 10% of the nominal amount offered.

Specialists who did not participate in the issuance auction shall not be eligible to participate in the additional placing.

The additional allocation will be at the allotment price set at the auction for the current issuance.

The procedures and conditions for the participation of specialists in the additional allocation are set forth in the relevant decrees authorising the issuance of the above mentioned bonds.

The nominal amount of the bonds for issue will be announced in a subsequent press release.

Rome 08/06/2008

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