The MEF announces the issuance of the following treasury bonds, to be auctioned on 14 May 2009, and settled on 18 May 2009, consisting of:
BTPs (Long Term Treasury Bonds):
- start date: 15 December 2008; ninth tranche
- maturity: 15 December 2013
- coupon: 3.75%
- ISIN: IT0004448863
- start date: 1 August 2007; fourteenth tranche
- maturity: 1 August 2039
- coupon: 5%
- ISIN: IT0004286966
In addition, the MEF announces that on that same day of 14 May 2009, the following off-the-run treasury bonds will be issued, with settlement date on 18 May 2009:
BTPs (Long Term TreasuryBonds):
- start date: 1 February 2005; nineteenth tranche
- maturity: 1 August 2015
- coupon: 3.75%
- ISIN: IT0003844534
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 brokerage companies and EU and non-EU investment businesses referred to 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 euro 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 up. The minimum sum subscribable is one thousand euro.
Bids from dealers must be submitted by the deadline 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 and familiar to dealers.
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 in 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, being:
- 0.30% for BTPs 3.75% 15.12.2008/2013
- 0.40% for BTPs 5% 1.8.2007/2039
- 0.40% for BTPs 3.75% 1.2.2005/1.8.2015.
The public shall be able to reserve bonds via the above-mentioned groups of dealers by the deadline set down in the calendar; brokers shall be able 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 subscription operations is as follows:
|BTPs maturity 15.12.2013||BTPs maturity 1.8.2039||BTPs maturity 1.8.2015|
|Public to reserve by||13 May 2009||13 May 2009||13 May 2009|
|Submission of bids to auction: by 11:00 am on||14 May 2009||14 May 2009||14 May 2009|
|Settlement of subscriptions||18 May 2009||18 May 2009||18 May 2009|
|Daily interest payable (days)||154||106||106|
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 offer of the additional trancheis set, with respect to each issuance, at an amount not exceeding:
- 10% of the maximum nominal amount offered for BTPs 15.12.2013,
- 10% of the maximum nominal amount offered for BTPs 1.8.2039,
- 10% of the maximum nominal amount offered for BTPs 1.8.2015.
Specialists who did not participate in the issuance auction shall not be eligible to participate in the additional placement.
The additional allocation shall be at the allotment price determined at the auction for the current issuance.
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.