The MEF announces the issue of the following treasury bonds to be auctioned on 14 October 2009 and settled on 16 October 2009, consisting of:
BTPs (Long-Term Treasury Bonds):
- start date: 1 June 2009; ninth tranche
- maturity: 1 June 2014
- coupon: 3.50%
- ISIN: IT0004505076
- start date: 1 March 2009; fourth tranche
- maturity: 1 March 2025
- coupon: 5%
- ISIN: IT0004513641
- start date: 1 September 2009; second tranche
- maturity: 1 September 2040
- coupon: 5%
- ISIN: IT0004532559
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 excluding bids at prices considered to be unfavourable on the basis of market conditions.
Italian, EU and non-EU banks as well as brokerage companies and EU and non-EU investment businesses referred to in the decrees authorising the issue 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 sum subscribable 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 compliance with the technical procedures established by the Banca d'Italia and familiar to dealers.
In the event that not all bids at the uniform price can be entirely accepted, there shall be an allotment pro rata, with rounding as required.
The allotment price will be announced in a press release that will 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 any charges being made in addition 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 BTP 3.50%1.6.2009/2014
- 0.40% for BTP 5% 1.3.2009/2025
- 0.40% for BTP 5% 1.9.2009/2040
The public may reserve bonds via the above mentioned groups of dealers by the deadline set down in the calendar; brokers are entitled to request a payment on account of the nominal amount reserved as security for completion of subscription.
On the settlement date, subscribers shall 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 subscriptions is as follows:
|BTP maturity 1.6.2014||BTP maturity. 1.3.2025||BTP maturity 1.9.2040|
|Public to reserve by||13 October 2009||13 October 2009||13 October 2009|
|Submission of bids to auction by: 11 AM on||14 October 2009||14 October 2009||14 October 2009|
|Settlement of subscriptions||16 October 2009||16 October 2009||16 October 2009|
|Daily interest payable||137||45||45|
State bond specialist dealers are eligible to participate in the placing of state bonds that will take place automatically in addition to the issuance auctions.
The offer of the additional tranche is set forth for an amount not exceeding
- 10% of the maximum nominal amount offered for BTP 1.6.2014
- 10% of the maximum nominal amount offered for BTP 1.3.2025
- 10% of the maximum nominal amount offered for BTP 1.9.2040
The specialist" dealers that did not participate in the issuance auction will not be eligible to participate in the additional placement.
The additional allocation shall be at the allotment price set at the auction for the current issuance.
The procedures and conditionsfor the participation of specialists in the additional allocations are set out in the relevant decrees authorising the issuance of the above mentioned bonds.