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Contenuto principale

- BOT ISSUE

Press release N° 168 of 10/22/2010

MEF announces an auction of BOTs for 26 October 2010, with settlement on 29 October 2010:

  Amount (in euro million) Maturity Days
Six-month 9,000 29 April 2011 182

It should be noted that € 9,500 million in BOTs will mature on 29 October 2010.

BOTs are to be offered at auction using the competitive auction placing system, with dealers' bids being expressed in terms of yield. Each operator admitted to take part in the auction can make up to a maximum of five bids.

Bonds may be subscribed up to a minimum sum of one-thousand euros. For each BOT issue, the relevant fiscal price shall be the average weighted price of the first tranche, calculated on the basis of the corresponding average weighted yield.

Expressed in percentages, yields indicated by dealers participating at BOT auctions may, with regard to all types of securities, vary by a 0.001 percentage point or a multiple thereof. Bids failing to indicate yield shall not be admitted to auction. Each bid shall be of a minimum of one-and-a- half million euros (€ 1,500,000).

Placing of BOTs shall be carried out with regard to dealers referred to in the issuance decree.

In application of the provisions of Section II, Part V of legislative decree no. 213 of 24 June 1998, and related implementation provisions, in connection with the dematerialisation of state securities, ordinary Treasury bonds are represented by book entries in favour of those entitled thereto. Banca d'Italia automatically enters the BOT amounts subscribed at auction to be settled in the clearing and settlement facility for financial instruments, with the date of settlement being the value date. On the basis of the allocations made, the broker allocatees shall credit the relevant amounts to the subscribers' accounts.

Purchase bids must reach Banca d'Italia strictly by means of the national interbanking network, by and no later than 11.00 AM on 26 October 2010, in compliance with the procedures established by the issuance decrees. It should be observed that in the event of a system malfunction preventing messages being inputted on the network, bids for the auction must be sent by faxing the relevant form.

Bids received beyond the deadline established in the issuance decree shall not be considered. Any bids submitted as a substitute for bids already received shall be taken into consideration only if received within the deadline referred to above. Bids cannot be withdrawn after the deadline referred to above.

In the event that bids by dealers exceed the amount offered, even as a total, by the Treasury, such bids shall be considered starting with the lowest yield up to the amount offered, save where the issuance decree provides otherwise.

"State bond specialists" are eligible to participate in the additional placing of six-month BOTs scheduled automatically for 27 October 2010.

The amount of the additional tranche is set at a maximum of 10% of the nominal amount offered at the issuance auction. Such a percentage represents the minimum sum offered in the additional placing, which the Treasury reserves the right to increase, following the closure of the issuance auction, in order to meet dealers' demands. Should such circumstances arise, a press release will be issued.

"Specialists" who did not participate in the auction shall not be eligible to participate in the additional placing. Allotment shall take place at the average weighted yield established at the issuance auction. The procedure for additional placing shall be in accordance with the provisions in the issuance decree. In particular, purchase bids shall be received by and no later than 3.30 PM on 27 October 2010.

Outstanding BOTs as at 15 October 2010 amounted to € 144,417 million, out of which € 3,500 million in three-month BOTs; € 56,445 million in six-month BOTs; and € 84,472 million in twelve-month BOTs.

Rome 10/22/2010
IT

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