MEF announces the issuance of treasury bonds, to be auctioned on 28 April 2009 and settled on 30 April 2009, represented by the following loans:
- Long-Term Treasury Bonds (Buoni del Tesoro Poliennali - BTP) indexed to Euro Area inflation
- 10-year bonds
start date: 15 March 2008; twelfth tranche
maturity: 15 September 2019
real annual coupon: 2.35% yearly, payable on a half-yearly basis
maximum nominal amount of issue: € 1,000 million
ISIN : IT0004380546
- 15-year bonds
start date: 15 March 2007; twelfth tranche
maturity date: 15 September 2023
real annual coupon: 2.60% yearly, payable on a half-yearly basis
maximum nominal amount of issue: € 1,000 million
ISIN: IT0004243512
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 applied when placing nominal BTPs. Bonds can be subscribed by the public within the time-limits shown in the calendar below. Each dealer may submit via the National Interbanking Network - by and no later than 11 am of the date shown below - a maximum of three bids, each offer having a real value (not recalculated on the basis of the Indexation Coefficient) of not less than € 500,000 euro. Bid prices, which must also be formulated in real terms, shall differ one from the other by at least 1 euro cent. On the basis of the Indexation Coefficient referring to the settlement date, Banca d'Italia will calculate the value equivalent to the capital subscribed and the daily accrued interest payable for the bonds subscribed at auction. Settlement will take place two working days following the auction date (T+2). On both the aforementioned bonds, subscribers will pay accrued interest for the period from 15 March 2009 to settlement date (46 days).
As payment for collecting bids from the public, dealers are entitled to receive the payment of a commission commensurate with the nominal amount of bonds allocated:
- 0.40% for BTPs€i 15/9/2019
- 0.40% for BTPs€i 15/9/2023.
The calendar for subscription operations is as follows:
BTPs€i 15/9/2019 | BTPs€i 15/9/2023 | |
Public to reserve by | 27 April 2009 | 27 April 2009 |
Submission of bids to auction: by 11.00 am on | 28 April 2009 | 28 April 2009 |
Settlement of subscriptions | 30 April 2009 | 30 April 2009 |
Daily interest payable (days) | 46 | 46 |
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 3.30 pm of 29 April 2009.
The procedures and conditions for the participation of state bond specialists in the additional allocations are set down in the relevant decrees authorising the issuance of the above-mentioned bonds.