The MEF announces the issuance of BTP€i long-term treasury bonds indexed to Euro-zone inflation, to be auctioned on 28 September and settled on 30 September 2010:
10-year BTP€i Euro zone inflation-indexed treasury bonds:
- start date: 15 March 2010; sixth tranche
- maturity: 15 September 2021
- real annual coupon: 2.10% yearly, payable on a half-yearly basis
- issuance amount: from a minimum of € 1,000 million to a maximum of € 1,500 million
- ISIN: IT0004604671
The above-mentioned bonds will be placed using the uniform-price auction mechanism, with allotment price and issuance amount being set discretionally within an issue 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 practices applicable when placing nominal BTPs. Bonds may be reserved by 27 September 2010. Each operator, by and no later than 11 AM of 28 September 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) of not less than € 500,000. Bid prices, similarly formulated in real terms, shall differ one from the other by at least one euro cent. The Banca d'Italia, on the basis of the Indexation Coefficient referring to the settlement date, will calculate the amount relating 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 30 September 2010. For the aforementioned BTP€i bonds, subscribers will be required to pay the interest accruing for 15 days.
As payment for collecting bids from the public, dealers will receive a 0.40% commission, proportional to the nominal amount of bonds allocated.
State bond specialist dealers are eligible to participate in the additional placement whose maximum amount, for each issue, will be equal to 10% of the auction amount, submitting bids by 3:30 PM of 29 September 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.