The MEF announces an auction of BOT for 12 October 2009, settlement date on 15 October 2009:
Amount (in million euro)
It should be noted that since there are no specific cash-flow needs, on 12 October 2009 the three-month BOT will not be offered.
In addition, please also note that on 15 October 2009, BOT for € 10,500 million will reach maturity (€ 4,500 million at three months and € 6,000 million at twelve months).
BOTs are offered via a competitive auction and dealers' bids are expressed in terms of yield.
Treasury bonds may be subscribed for a minimum amount of one-thousand euro. For each BOT issue, the fiscal price of reference is the weighted average price of the first tranche, calculated on the basis of the corresponding weighted average yield.
Yields indicated by dealers participating in BOT auctions, expressed in percentage terms, may vary, for all types of securities, by 0.001% or multiple thereof. Bids without yield reference will not be admitted to auction. Each bid may not be less than one-and-a-half million euro (€ 1,500,000).
The BOT issue will be addressed to those operators that have been indicated in the issuance decree.
In application of the provisions set forth in Sec.II - Title V of Legislative Decree 24 June 1998, no. 213 and related implementation provisions on the dematerialisation of Government bonds, treasury bonds are represented by accounting entries in favour of the entitled. Banca d'Italia automatically enters the BOT amounts subscribed at auction and settles them through the clearing and settlement facility for financial instruments, entering the date of settlement as value date. On the basis of allocations, the broker allocatees will credit the related amounts to the subscribers' accounts.
Purchase bids - a maximum of three - must be submitted to the Banca d'Italia strictly by means of the national interbanking network, within and no later than 11 AM of 12 October 2009, in compliance with the procedures and provisions set forth in the issuance decrees. Please note that should there be a malfunctioning of the system, thereby preventing the transmission of messages on the network, requests for participation in the auction must be sent via fax.
Bids received after the deadline set in the issuance decree will not be considered. Bids in replacement of previously submitted requests will be taken into consideration only if they arrive by the aforementioned deadline. Requests cannot be withdrawn after the aforementioned deadline.
Should any dealer's bids exceed, even as an aggregate, the amount offered by the Treasury, they will be taken into consideration starting from the one with the lowest yield, up to the amount offered, unless otherwise provided for in the issuance decrees.
State bond specialists are eligible for participation in the additional placement of one-year BOTs, which is set to take place automatically on 13 October 2009.
The amount of the additional tranche is fixed at 10% of the nominal amount offered in the issuance auction. This percentage is the minimum amount offered in the additional placement, which the Treasury may increase after the closing of the issuance auction to satisfy the demand expressed by dealers. In that event, a specific press release will be published.
Specialists who did not participate in the issuance auction shall not be eligible to participate in the additional placement. Allocation will take place at the weighted average yield set in the issuance auction. The additional placement procedure will follow the provisions set forth in the issuance decree. Specifically, purchase bids must be submitted within and no later than 3:30 PM of 13 October 2009.
Outstanding BOT at 30 September 2009 amounted to € 167,975.595 million, of which € 3,500 million at 214 days, € 3,500 million at 276 days, € 8,500 million at three months, € 63,003 million at six months and € 89,472.595 million at twelve months.