The MEF announces the issuance of long-term treasury bonds indexed to Euro-zone inflation, to be auctioned on 27 July 2011, and settled on 29 July 2011:
- ten-year Euro zone inflation-indexed treasury bonds:
starting accrual date:15 March 2010; sixteenth tranche
maturity:15 September 2021
real annual coupon: 2.10% yearly, payable on a half-yearly basis
nominal amount of issue: from a minimum of 500 million euros to a maximum of 1,000 million euros
ISIN : IT0004604671
The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally within an issue interval.
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 in accordance with the technical criteria and praxis applicable when placing nominal BTPs. Bonds are reservable by 26 July 2011. Each operator, by and no later than 11am of 27 July 2011, may submit via the National Interbanking Network, up to a maximum of three bids, each offer having a real value (not recalculated on the basis of the Indexation Coefficient) not below 500,000 euros. 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 amount relative to the capital subscribed and the accrued interest payable on settlement for the bonds subscribed at auction. Settlement will take place two working days following auction date (T+2), on 29 July 2011. For the above inflation-indexed BTPs, subscribers will be required to pay interest for an amount referring to 136 days.
As payment for collecting bids from the public, dealers will receive a commission 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 equal to 10% of the maximum auction amount, submitting bids by 15:30pm of 28 July 2011. The procedures and conditions for the participation of specialists in the additional allocations are set forth in the relevant decree authorising the issuance of the above-mentioned bonds.