Press Release N° 93 of 06/20/2009
INDEXED TO EUROZONE INFLATION
The MEF has provided for theissue on 24 June, 2009, with settlement on 26 June, 2009, of the following LongTerm Treasury Bonds linked to inflation in the Eurozone:
- 10 Year BTP€i:
start date: 15 March 2008;fourteenth tranche
maturity: 15 September 2019
real annual coupon rate: 2.35%annual, payable six-monthly
maximum nominal issuance amount:1,500 million euros
The placementmechanism to be used will be the uniform-price auction mechanism, withallotment price and issuance amount being set discretionally. The amountplaced will be determined excluding bids at prices considered to be unfavourable on the basis of market conditions.
As regards theremainder of the procedure, placement will be conducted following the technicalcriteria and regulations applied when placing nominal BTPs. The public will be able to reserve bondsuntil 23 June, 2009; all dealers can, until 11.00 on 24 June, 2009, submit, via the National InterbankingNetwork, a maximum of three bids, each having a real value (not revalued on thebasis of the Indexation Coefficient) of no less than 500,000 euro. Bid prices, whichmust also be formulated in real terms, shall differ by at least 1 euro cent. Onthe basis of the Indexation Coefficient with reference to the settlement date, Banca d'Italia will calculate the equivalentvalues in relation to the capital subscribed and the accrued interest payable forsettlement of the bonds subscribed at auction. Settlement shall take place twoworking days after the day of the auction (T+2), being 26 June, 2009. For theaforementioned BTP€i, the maturity date on the second coupon ofwhich is 15 March last, subscribers shall pay accrued interest for the period of103 days.
Aspayment for collecting bids from the public, commission shall be paid todealers - commensurate with the nominal amount of bonds allocated - equal to0.4%.
State bondspecialist dealers shall be eligible to participate in the additionalplacing, the maximum amount of which shall be equal to 10% of the amountoffered at auction, submitting subscription bids 15.30 on 25 June, 2009. The procedure and conditions for the participation of specialists inthe additional allocations are set out in the relevant decrees authorising theissuance of the above mentioned bonds.