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Ministry of Economy and FinanceDetails on demand composition during the two Phases of the eleventh issuance of BTP Italia

Press Release N° 79 of 05/19/2017

The Ministry of Economy and Finance announces some details regarding the eleventh issuance of BTP Italia, the government bond indexed to Italian inflation (FOI index, ex-tobacco - Indices of Consumer Prices for blue and white-collar households with the exclusion of tobacco), with 6 year maturity.
During the First Phase of the placement, dedicated to retail investors, the issuance met a larger demand on the first day compared to the following two days, in terms of both number of contracts and turnover, in line with past issuances.
The Second Phase, dedicated to institutional investors, that lasted 2 hours during the fourth day of the placement, saw a total demand greater than the final amount on offer of 5,400 million Euros.

    number of contracts total turnover demanded (€) total turnover allotted (€)
First Phase 1st day 29,339 1,615,355,000 1,615,355,000
First Phase 2nd day 18,143 1,080,648,000 1,080,648,000
First Phase 3rd day 8,463 493,513,000 493,513,000
Second Phase 4th day (closing at 11 a.m.) 427 7,041,634,000 5,400,000,000

With reference to the First Phase, out of 55,945 contracts concluded on the MOT (the Borsa Italiana’s screen-based market for securities and government bonds) through Banca IMI S.p.A. and Unicredit S.p.A.- dealers of the transaction - around 49 per cent of them had a size of less than 20,000 euros, while considering contracts up to 50,000 euros, they were around 82 per cent of the total related to that Phase of the placement.
Although the methodology of issuance does not allow to collect precise information about the investors’ characteristics, the data received from Dealers, Co-Dealers and other intermediaries show that, during the First Phase, there was an higher share of individual investors with respect to private banking (58 per cent versus 42 per cent). Within the share allotted to individual investors, requests received through the banking networks at the bank desk were estimated to be around 71 per cent, while orders carried out via home banking were about 29 per cent. Looking at the geographical distribution of orders received during the First Phase of the placement, about 92 per cent has been allocated to domestic investors, while 8 per cent has been placed abroad.
With reference to the Second Phase, data collected from Dealers, Co-Dealers and other intermediaries allow to elaborate statistics that cover most of the amount issued. In particular, around 66 per cent of turnover of the Second Phase was allotted to banks, while asset managers bought around 27 per cent. The rest of the issuance has been allotted to official institutions (3 per cent), insurance companies (2 per cent), and other financial and non-financial institutions (around 2 per cent).
During the Second Phase, the placement of the bond saw a dominant presence of Italian investors, who bought about 74 per cent of it. A significant part of the issuance was allotted also to investors from the UK and Ireland (around 15 per cent) and from Switzerland (5 per cent). The remaining 6 per cent of the issuance of the Second Phase was allotted to investors from other European countries.

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America. The materials do not constitute an offer of securities for sale in the United States. The securities discussed herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “US Securities Act”) and the securities may not be offered or sold in the United States of America absent registration or an exemption from registration as provided in the U.S. Securities Act, and the rules and regulations thereunder. No public offering of securities is being or will be made in the United States of America. Accordingly, the securities are being offered, sold or delivered only to persons outside the United States in offshore transactions in reliance on Regulation S under the US Securities Act.

Roma 05/19/2017

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