The MEF announces the issuance of the following Euro-zone inflation-indexed long-term treasury bonds to be auctioned on 27 August 2008 and settled on 29 August 2008:
- Long-Term Treasury Bonds indexed to Euro-zone inflation
- five-year
starting accrual date:15 March 2007; thirteenth tranche
maturity date: 15 September 2012
real annual coupon:1.85% yearly, payable on a half-yearly basis
maximum nominal amount of issue: 750 million euro
- fifteen-year
starting accrual date: 15 March 2007; eighth tranche
maturity date:15 September 2023
real annual coupon: 2.60% yearly, payable on a half-yearly basis
maximum nominal amount of issue: 750 million euro
The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally. The amount placed will be determined by excluding bids at prices considered to be unfavourable on the basis of market conditions.
As for the rest of the procedure, placement will be conducted following the technical criteria and regulations applicable when placing nominal BTPs. Bonds will be subscribable by the public by deadline shown in the calendar below. Each dealer, by and no later than 11am of the date shown below, may submit via the National Interbanking Network, a maximum of three bids, each offer having a real value (not recalculated on the basis of the Indexation Coefficient) of no less than 500,000 euro. Bid prices, they too formulated in real terms, shall differ one from the other by at least 1 euro cent. The Banca d'Italia, on the basis of the Indexation Coefficient referring to the settlement date, will calculate the value equivalent to the capital subscribed and the accrued interest payable for the bonds subscribed at auction. Settlement will take place two working days following auction date (T+2). With regard to both the aforementioned bonds, subscribers will be required to pay daily interest for the period from 15 March 2008 to settlement date (167 days).
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% for five-year BTPs€i
- 0.40% for fifteen-year BTPs€i.
The calendar for subscription operations is as follows:
five-year BTPs€i | Fifteen-year BTPs€i | ||
Public to reserve by | 26 August 2008 | 26 August 2008 | |
Submission of bids to auction by 11am of | 27 August 2008 | 27 August 2008 | |
settlement of subscriptions | 29 August 2008 | 29 August 2008 | |
Payable daily interest | 167 | 167 |
State bond specialist dealers are eligible to participate in the additional placement whose maximum amount will be equivalent to 10% of the auction amount, submitting bids by 15:30pm of 28 August 2008.
The procedures and conditions for the participation of specialists in the additional allocations are set forth in the relevant decrees authorising the issuance of the above-mentioned bonds.