The MEF announces the issuance of the following state bonds on 28 July 2011, with settlement date on 1 August 2011:
- Floating rate bonds indexed to 6 month Euribor ("CCTeu"):
start date: 15 April 2011; seventh tranche
maturity: 15 April 2018
half-yearly coupon: six-month Euribor with a 1% spread; current coupon, with maturity date on 15 October 2011, equal to 1.335% (yearly coupon 2.626%).
ISIN: IT0004716319
- BTPs (Long-Term Treasury Bonds):
start date: 1 July 2011; first tranche
maturity: 1 July 2014
yearly coupon: 4.25%
ISIN: to be attributed
start date: 1 March 2011; eleventh tranche
maturity: 1 September 2021
yearly coupon: 4.75%
ISIN : IT0004695075
In addition, the MEF announces that on the same date of 28 July 2011, with settlement date on 1 August2011, the following off-the-run bonds will be auctioned:
- Floating rate bonds indexed to 6 month Euribor ("CCTeu"):
start date: 15 June 2010; thirteenth tranche
maturity: 15 December 2015;
half-yearly coupon: six-month Euribor with a 0.80% spread; current coupon, with maturity date on 15 December 2011, equal to 1.291% (yearly coupon 2.539%).
ISIN: IT0004620305
The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally within an issuance interval to be announced in a subsequent press release.
The amount placed will be determined excluding bids at prices considered to be unfavourable on the basis of market conditions.
Italian, EU and non EU banks, as well as the brokerage companies and EU and non-EU investment businesses referred to in the decrees authorising the issuance of the above mentioned bonds, are eligible to participate in the auction.
The dealers referred to above may bid on their own account or on behalf of third parties.
Each bid submitted must state the relevant offer price. Each dealer may submit up to a maximum of three bids, each at a different price and for a minimum amount of 500,000 Euro of nominal capital; Any bid below the minimum amount will not be considered. Each bid must not exceed the issuance amount; any bids in excess of the issuance amount will be admitted only up to that amount.
Prices may vary by a minimum of one Euro cent; any variations by a different amount will be rounded upwards. The minimum sum subscribable is one-thousand Euro.
Bids from dealers must be submitted by the deadlines set down in the calendar below and by means of electronic bid sent to the Banca d'Italia via the National Interbanking Network in accordance with the technical procedures established by the Banca d'Italia and familiar to dealers.
In the event that not all bids at the uniform price can be accepted, allotment will be on a pro-rata basis, with rounding as required.
The allotment price will be announced by way of a press release, which will also state the amounts allocated to the specialists at the last three auctions.
Dealers participating in the auction will arrange for the bonds allocated to be assigned to subscribers, without further charges being added to the allotment price.
Settlement of the bonds allocated by dealers will be at the allotment price and with payment of daily interest from the day following the start date of the current coupon to the day of settlement.
As payment for collecting bids from the public, said dealers will be paid a commission proportionate with the nominal amount of bonds allocated, specifically:
- 0.30% for CCTeu 15.04.2011/2018
- 0.20% for BTPs 4.25% 01.07.2011/2014
- 0.40% for BTPs 4.75% 01.03.2011/01.9.2021
- 0.30% for CCTeu 15.06.2010/15.12.2015
The public will be able to reserve bonds via the above mentioned groups of dealers by the deadline shown in the calendar; brokers will be able to request a payment on account of the nominal amount reserved as security for completion of subscription.
On settlement date, subscribers will pay the sum due for the allocated bonds, on the basis of the allotment price, as well as daily interest due. A receipt will be issued on payment.
The calendar for subscription operations is as follows:
| CCTeu maturity 15.04.2018 | BTP maturity 01.07.2014 | BTP maturity 01.09.2021 | CCTeu maturity 15.12.2015 | |
|---|---|---|---|---|
| Public to reserve by | 27 July 2011 | 27 July 2011 | 27 July 2011 | 27 July 2011 |
| Submission of bids to auction: by 11.00 AM on | 28 July 2011 | 28 July 2011 | 28 July 2011 | 28 July 2011 |
| Settlement of subscriptions | 1 August 2011 | 1 August 2011 | 1 August 2011 | 1 August 2011 |
| Daily interest payable (days) | 108 | 31 | 153 | 47 |
"State bond specialist dealers" are eligible to participate in the placing of state bonds that will take place automatically in addition to the issuance auctions.
The additional placing will take place on the same day at 3.30 PM.
The offer of the additional tranche is fixed for a maximum amount not exceeding:
- 10% of the maximum nominal amount offered for CCTeu of 15.04.2018,
- 25% of the maximum nominal amount offered for BTP of 01.07.2014,
- 10% of the maximum nominal amount offered for BTP of 01.09.2021
- 10% of the maximum nominal amount offered for CCTeu of 15.12.2015.
"Specialists" who did not participate in the issuance auction will not be eligible to participate in the additional placing.
The additional allocation will be at the allotment price set at the auction for the current issuance.
The procedures and conditions for the participation of "specialists" in the additional allocations are defined in the relevant decrees authorising the issuance of the above mentioned bonds.