The MEF announces the issuance of the following BTPs to be auctioned on 12 November 2010, and settled on 16 November 2010:
BTPs (long-term treasury bonds):
- start date: 1 November 2010; first tranche
- maturity: 1 November 2015;
- coupon: 3%
- ISIN: to be assigned
- start date: 1 September 2010; second tranche
- maturity: 1 March 2026;
- coupon: 4.50%
- ISIN: IT0004644735
In addition, the MEF announces that on the same date of 12 November 2010, with settlement date on 16 November 2010, the following off-the-run bonds will be auctioned:
- start date: 1 August 2003; eleventh tranche
- maturity: 1 August 2034;
- coupon: 5%
- ISIN: IT0003535157
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 issuance of the above-mentioned bonds are eligible to participate in the auction.
The aforementioned dealers 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 upwards. The minimum sum subscribable is one-thousand euros.
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 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 and no additional charges will be requested on top of the allotment price.
Settlement of the bonds allocated by dealers will 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 will be paid to the said dealers, commensurate with the nominal amount of bonds allocated, equal to:
- 0.30% for BTPs 3% 1.11.2010/2015,
- 0.40% for BTPs 4.50% 1.9.2010/1.3.2026,
- 0.40% for BTPs 5% 1.8.2003/2034.
Bonds will be reservable by the public via the above-mentioned groups of dealers by the deadline set down in the calendar; brokers may request a payment on account of the nominal amount reserved as security for completion of subscription.
On settlement date, the subscribers will 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 1.11.2015||BTPs maturity 1.3.2026||BTPs maturity 1.8.2034|
|Public to reserve by||11 November 2010||11 November 2010||11 November 2010|
|Submission of bids to auction: by 11.00am on||12 November 2010||12 November 2010||12 November 2010|
|Settlement of subscriptions||16 November 2010||16 November 2010||16 November 2010|
|Daily interest payable (days)||15||76||107|
State bond specialist dealers are eligible to participate in the placements of state bonds that will take place automatically in addition to the issuance auctions.
The offer of the additional tranche is fixed, with respect to each issue, at an amount not exceeding:
- 25% of the maximum nominal amount offered for BTPs 1.11.2015,
- 10% of the maximum nominal amount offered for BTPs 1.3.2026,
- 10% of the maximum nominal amount offered for BTPs 1.8.2034.
The additional allocation will be at the allotment price established at the auction for the current issuance.
The terms 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.