The MEF announces the issuance of long-term treasury bonds indexed to Euro-zone inflation, to be auctioned on 27 October 2010 and settled on 29 October 2010:
- Euro zone inflation-indexed long-term treasury bonds:
starting accrual date:15 March 2010; eighth tranche
maturity:15 September 2021
real annual coupon: 2.10% yearly, payable on a half-yearly basis
starting accrual date:15 September 2009; tenth tranche
maturity:15 September 2041
real annual coupon: 2.55% yearly, payable on a half-yearly basis
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, referring to the two bonds as a whole, between a minimum amount of 750 million euros and a maximum of 1,500 million euros.
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 the deadline shown in the calendar here below. Each operator, by and no later than 11am of the day shown here below, 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 euros. 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). For both the aforementioned bonds, subscribers will be required to pay interest for the period from 15 September 2010 to settlement date (44 days).
As payment for collecting bids from the public, dealers will receive a commission commensurate with the nominal amount of bonds allocated, equal to:
- 0.40% for BTPs€i 15 September 2021
- 0.40% for BTPs€i 15 September 2041.
The calendar for subscription operations is as follows:
|BTP€i 15.09.2021||BTP€i 15.09.2041|
|Public to reserve by||26 October 2010||26 October 2010|
|Submission of bids to auction: by 11.00am on||27 October 2010||27 October 2010|
|Settlement of subscriptions||29 October 2010||29 October 2010|
|Daily interest payable (days)||44||44|
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 15:30pm of 28 October 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.