Benvenuto sul sito del Ministero dell’Economia e delle Finanze, conosciuto anche come Portale mef
Italian Government

Contenuto principale

- AMOUNT OF CCT & BTP ISSUANCE

 12/21/2009

Press release N° 195 of 12/21/2009

MEF announces the issuance of the following state bonds on 30 December 2009 with settlement date on 4 January 2010:

CCTs (Treasury Credit Certificates):

  • start date: 1 July 2009; ninth tranche
  • maturity: 1 July 2016
  • six-month coupon: equal to the yield on six-month BOTs (Treasury Bonds) referring to the auction held at the end of the month prior to the start date of the six-monthly payment, increased by a spread of 0.15 percentage points.
  • ISIN: IT0004518715

BTPs (Long Term Treasury Bonds):

  • start date: 15 December 2009; first tranche
  • maturity: 15 December 2012
  • coupon: 2%
  • ISIN: to be attributed
  • start date: 1 September 2009; seventh tranche
  • maturity: 1 March 2020
  • coupon: 4.25%
  • ISIN: IT0004536949

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 by 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 indicated 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 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 will vary by a minimum of one euro cent; any variations by a different amount will be rounded upwards. The minimum subscribable sum 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 that dealers are familiar with.

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 shall be announced by way of a press release, which shall also state the amounts allocated to the "specialists" at the last three auctions.

Dealers participating in the auction shall 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 shall 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, commission shall be paid to the said dealers, commensurate with the nominal amount of bonds allocated, i.e.:

  • 0.30% for CCT 01.07.2009/2016
  • 0.20% for BTP 2% 15.12.2009/2012
  • 0.40% for BTP 4.25% 01.09.2009/01.03.2020.

The public may reserve from the above-mentioned groups of dealers by the deadline set down in the calendar; brokers may request a payment on account of the nominal amount reserved as security for completion of subscription.

On the settlement date, subscribers will pay the sum due for the bonds allocated, 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:

Calendar for subscription operations

  CCTs maturity 01.07.2016 BTPs maturity 15.12.2012 BTPs maturity 01.03.2020
Public to reserve by 29 December 2009 29 December 2009 29 December 2009
Submission of bids to auction: by 11.00 AM on 30 December 2009 30 December 2009 30 December 2009
Settlement of subscriptions 4 January 2010 4 January 2010 4 January 2010
Daily interest payable (days) 3 20 125

"State bond specialist dealers" are eligible to participate in the placing of state bonds that shall take place automatically in addition to the issuance auctions.

The additional allocation is to be held on the same day, on 30 December 2009 at 3.30 PM.

The offer of the additional tranche is set at an amount not exceeding:

  • 10% of the maximum nominal amount offered for CCT 01.07.2016
  • 25% of the maximum nominal amount offered for BTP 15.12.2012
  • 10% of the maximum nominal amount offered for BTP 01.03.2020.

"Specialists" that did not participate in the issuance auction shall not be eligible to participate in the additional placing.

The additional allocation will take place at the adjudication price defined in the present auction.

The procedures and conditions for the participation of "specialists" in the additional allocations are set forth in the relevant decrees authorising the issuance of the above-mentioned bonds.

Rome 12/21/2009
IT