The MEF announces the issuance of long-term treasury bonds indexed to Euro-zone inflation, to be auctioned on 24 February 2010 and settled on 26 February 2010:
- 10-year Euro-zone inflation-indexed treasury bonds:
starting accrual date: 15 March 2008; eighteenth tranche
maturity: 15 September 2019
annual real coupon: annual 2.35%, payable on a half-yearly basis
nominal amount of issue: from a minimum of 750 million euros to a maximum of 1.250 million euros
The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally within the above-mentioned issuance interval.
The amount placed will be determined by excluding bids at prices considered to be unfavourable on the basis of market conditions.
As for the rest of the procedure, placement will be conducted in accordance with the technical criteria and praxis applicable when placing nominal BTPs. Bonds can be reserved by 23 February 2010. Each dealer, by and no later than 11am of 24 February 2010, may submit via the National Interbanking Network, up to a maximum of three bids, each offer having a real value (not recalculated on the basis of the Indexation Coefficient) not below 500,000 euro. Bid prices, they too formulated in real terms, shall differ one from the other by at least 1 euro cent. The Banca d'Italia, on the basis of the Indexation Coefficient referring to the settlement date, will calculate the amount relative to the capital subscribed and the accrued interest payable on settlement for the bonds subscribed at auction. Settlement will take place two working days following auction date (T+2), on 26 February 2010. On the aforementioned Euro zone inflation-indexed long-term treasury bonds, in respect of which the fourth coupon reached maturity on 15 March 2009, subscribers will be required to pay 164 days' interest.
As payment for collecting bids from the public, dealers will receive a commission commensurate with the nominal amount of bonds allocated, being 0.40%.
State bond specialist dealers are eligible to participate in the additional placement whose maximum amount will be equivalent to 10% of the maximum auction amount, submitting bids by 15:30pm of 25 February 2010. The procedures and conditions for the participation of specialists in the additional allocations are set forth in the relevant decree authorising the issuance of the above-mentioned bonds.