Browsing

Main content

Ministry of Economy and FinancePLACEMENT VIA AUCTION OF EURO-ZONE INFLATION INDEXED LONG-TERM TREASURY BONDS

Press Release N° 132 of 08/21/2008

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.

Rome 08/21/2008

Advanced search

Archive of press releases