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Italian Government

Contenuto principale

- Treasury Bills (BOTs) offering announcement


Press release N° 8 of 01/24/2012

The Ministry of Economy and Finance announces the following BOT issues, that will be settled on 31 January 2012 and carried out through auction on 27 January 2012:

  Amount (million euros) Maturity Days
6 month BOTs 8,000 31 July 2012 182
Flexible BOTs 3,000 27 December 2012 331

According to D.M. 12 February 2004, the maximum fee that can be charged by intermediaries for a 331 day BOT is 0.30%.

It is worth noting that € 7,500 million BOTs are maturing on 31 January 2012.

BOTs are offered through a competitive auction in which operators are required to send their bids in terms of yield. Each operator participating in BOT auctions is allowed to submit up to five bids.

BOTs can be subscribed for a minimum amount of 1,000 euros. For each BOT issue, the relevant price for fiscal purpose is the weighted average price of the first tranche, as obtained from the relative weighted average yield.

Any bids not containing yield reference will not be accepted. Yields indicated by dealers, expressed in percentage, can vary of 0.001% or multiples thereof. The nominal amount of any bid cannot be less than 1.5 million euros.

The subjects allowed to participate in the auction are indicated in the issuance decrees.

In accordance with Section II - Title V of the legislative decree no. 213 of 24 June 1998 and the following related rules, that establishes all the details about dematerialization of Government Bonds, BOTs are represented by account registration in favour of the entitled.
Bank of Italy will comply with the "ad hoc" procedure, in order to automatically settle the BOT subscribed amounts through the so-called facility of compensation and settlement service, which deals with financial instrument with the same settlement date. On the basis of the allocation, allottee intermediaries will credit the relative amounts to the subscribers' accounts.

Bids are to be transmitted to the Bank of Italy - using exclusively the National Interbanking Network - strictly by 11.00 am of the auction date, respecting the rules and the deadline indicated in the issuance decrees. In case of malfunctioning of the equipment, not allowing the admission of messages through the network, requests of participation in the auction must be sent via fax.

Bids received after the deadline set in the decrees are not taken into consideration. Possible requests that substitute previous ones, are taken into consideration only if they arrive before the deadline. Requests cannot be withdrawn after the above mentioned deadline.

Any dealer's bids exceeding, also as a whole, the amount offered by the Treasury will be taken into consideration, starting from the one at the lowest yield, to the extent of the amount offered, except what stated in the issuance decrees.

"Specialists in Government Bonds" are entitled to participate in the 6 month BOTs supplementary auction, set for the 30 January 2012.

The amount of this tranche will be 10% of the nominal outstanding offered in the ordinary auction. It is worth noting that this percentage represents the offered amount in the supplementary placement, that the Treasury can modify after the ordinary auction, based on the demand expressed by operators; in this case a specific press release will be published.

Only Specialists who take part in the ordinary auction are entitled to participate in the supplementary placement. The assignment will be at the weighted average yield set in the ordinary auction. The supplementary placement procedure follows the provisions set in the issuance decree. Specialists can participate in the supplementary placement by submitting their bids before 15.30 of 30 January 2012.

On 16 January 2012 outstanding BOTs were 145,893 million euros, of which € 3,500 millions of 136 days, € 52,928 millions of 6 month and € 89,465 millions of 12 month BOTs.

Rome 01/24/2012