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- BOT Issue

Press release N° 127 of 08/23/2010

The MEF announces a BOT auction for 26 August 2010, with settlement date on 31 August 2010:

  Amount (in million euro) Maturity Days
Six-month 9,500 28.02.2011 181

Please note that BOTs amounting to € 10,738 million will reach maturity on 31 August 2010.

BOTs are offered via a competitive auction, and dealers' bids are expressed in terms of yield. Each operator taking part in the auction is allowed to make up to a maximum of five bids.

The bonds can be subscribed for a minimum amount of one thousand euro. For each issue of BOTs, 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 the BOTs auctions, expressed in percentage terms, may vary, in respect of all types of securities, by 0.001% or multiple thereof. Bids without yield reference will not be admitted to auction. Each bid cannot be lower than one-and-a-half million euro (€ 1,500,000).

Dealers set forth in the decrees authorising the issuance of the BOTs are eligible for participation in the auction.

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, BOTs are represented by account registrations entered 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 for each tranche - must be submitted to Banca d'Italia strictly by means of the national interbanking network, within and no later than 11 AM of 26 August 2010, 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 a total, the amount offered by the Treasury, they will be considered starting from the one with the lowest yield, up to the amount offered, unless otherwise provided for in the issuance decree.

"State bond specialists" are eligible to take part in the additional placement of 6-month BOTs, which is set to take place automatically on 27 August 2010.

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 procedure for the additional placement will be as set forth in the issuance decree. Specifically, bids must be submitted by, and no later than, 3:30 PM of 27 August 2010.

Outstanding BOTs at 16 August 2010 amounted to € 144,912,569 million, of which € 3,000 million at three months, € 57,488 million at six months, € 84,424,595 million at twelve months.

Rome 08/23/2010
IT

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