The MEF announces the issuance of the following Euro-zone inflation-indexed long-term treasury bonds to be auctioned on 26 September 2008 and settled on 30 September 2008:
- thirty-year Long-Term Treasury Bonds indexed to Euro-zone inflation:
starting accrual date:15th September 2004; twenty-first tranche
maturity date: 15th September 2035
real annual coupon: 2.35% 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 25 September 2008 Each dealer, by and no later than 11am of 26 September 2008, can 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), on 30 September 2008. For the above-mentioned Euro-zone inflation-indexed long-term treasury bonds, vis-à-vis which the eighth coupon reached maturity on 15 September 2008, subscribers will be required to pay daily interest for 15 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 0.40%.
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 29 September 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.