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Ministry of Economy and FinanceLaunch of a new 5-year BTP€I with May/November coupon cycle

Press Release N° 91 of 05/17/2016

The Ministry of Economy and Finance (MEF) has mandated Banca IMI S.p.A., Nomura Int. PLC, Royal Bank of Scotland PLC and UBS Ltd for a new syndicated benchmark BTP€i - linked to the Eurozone HICP ex-tobacco – maturing 15 May 2022. The transaction will be launched in the near future subject to market conditions. FCA/ICMA stabilisation.

With this issuance, the MEF intends to set a new benchmark on the 5 year segment of the real yield curve after 3 years of absence.

The structure of the new bond will be that of the BTP€i issued so far, with the only difference in the payment date of the coupons, that will be in the months of May and November. This new coupon payment cycle and the maturity month will characterize also future issuances of new BTP€is.

As stated also in the Guidelines on Public Debt Management for 2016, the choice of changing the coupon cycle and maturity month is driven by the aim to meet the consolidated demand coming from investors for inflation-linked products, achieving at the same time a more efficient management of interest payments and redemptions’ profile for the MEF.

This first issuance of a BTP€i with coupon cycle May-November will be launched through a syndicated placement composed by banks selected within the Specialists group and that are active in the European linkers segment. The aim is to ensure an effective marketing effort in order to obtain a wider distribution, highlighting the implications of the new coupon cycle in the evaluation process of the bonds in this segment.

The new 5 year BTP€i will be reopened regularly through auctions, in order to ensure an adequate final outstanding, as for all BTP€is.
 

Not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such offer or solicitation would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to U.S. persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of such securities is intended to be made in the United States.

Roma 05/17/2016

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