The Ministry of Economy and Finance announces some details regarding the fourteenth issuance of BTP Italia, the government bond indexed to Italian inflation (FOI index, ex-tobacco - Indices of Consumer Prices for blue and white-collar households with the exclusion of tobacco), with 4 year maturity.
During the First Phase of the placement, dedicated to retail investors, the issuance met a larger demand on the first day compared to the following two days, in terms of both number of contracts and turnover, in line with past issuances.
The Second Phase, dedicated to institutional investors, that lasted 2 hours during the fourth day of the placement has been fully allotted.
| Number of contracts | Total turnover demanded (€) | Total turnover allotted (€) | ||
|---|---|---|---|---|
| First Phase | 1st day | 16,066 | 481,354,000 | 481,354,000 |
| First Phase | 2nd day | 9,347 | 241,321,000 | 241,321,000 |
| First Phase | 3rd day | 5,598 | 140,665,000 | 140,665,000 |
| Second Phase | 4th day (closing at 11 a.m.) | 55 | 1,300,787,000 | 1,300,787,000 |
With reference to the First Phase, out of 31,011 contracts concluded on the MOT (the Borsa Italiana’s screen-based market for securities and government bonds) through Banca IMI S.p.A. and BNP Paribas - Dealers of the transaction - around 68 per cent of them had a size of less than 20,000 euros, a share that was notably higher than those recorded in past issuances since 2014, when the placement period has been divided into two phases. Considering contracts up to 50,000 euros, they were around 93 per cent of the total related to that Phase of the placement.
Although the methodology of issuance does not allow to get precise information about the investors’ characteristics, the data received from Dealers, Co-Dealers and other intermediaries show that, during the First Phase, there was a significantly higher estimated share of individual investors than that of private banking (77 per cent versus 23 per cent).
Within the share allotted to individual investors, requests received through the banking networks at the bank desk were estimated to be around 76 per cent, while orders carried out via home banking were about 24 per cent. Looking at the geographical distribution of orders received during the First Phase of the placement, it is estimated that domestic investors bought almost completely the amount issued during the First Phase.
With reference to the Second Phase, data collected from Dealers, Co-Dealers and other intermediaries allow to elaborate statistics that cover most of the amount issued.
In particular, around 62 per cent of turnover of the Second Phase was allotted to banks, while official institutions and asset manager bought respectively around 20 and 17 per cent. The rest of the issuance, around 1 per cent, has been allotted to insurance companies.
During the Second Phase, the placement of the bond saw a dominant presence of domestic investors, who bought about 93 per cent of it. The remaining amount of the issuance of the Second Phase was allotted to investors from UK (around 5 per cent) and France (around 2 per cent).
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America. The materials do not constitute an offer of securities for sale in the United States. The securities discussed herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “US Securities Act”) and the securities may not be offered or sold in the United States of America absent registration or an exemption from registration as provided in the U.S. Securities Act, and the rules and regulations thereunder. No public offering of securities is being or will be made in the United States of America. Accordingly, the securities are being offered, sold or delivered only to persons outside the United States in offshore transactions in reliance on Regulation S under the US Securities Act.