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Ministry of Economy and FinanceBTP Futura: the new 100% retail issuance, aimed at financing measures related to the post COVID-19 recovery from Monday 6th of July. The guaranteed minimum annual coupon rates set at 1.15%, 1.30% and 1.45%

Press release N° 159 of 07/03/2020

The Ministry of Economy and Finance announces that the series of guaranteed minimum annual coupon rates for the 1st issuance of the BTP Futura, that will take place from Monday 6th of July until Friday 10th of July, unless early closing, is set to :

  • 1.15% from the 1st to the 4th year;
  • 1.30% from the 5th to the 7th year;
  • 1.45% from the 8th to the 10th year.

The definitive annual coupon rates will be communicated at the closing of the placement period, and in any case they will not be lower than the guaranteed minimum annual coupon rates. Moreover, the coupon rate of the first period, from the 1st year to the 4th year, will remain unchanged while only the other two coupon rates, related to the following two periods, might be revised upwards based on market conditions.

The ISIN code of the bond for the placement period is IT0005415283.

The proceeds of the bond will be entirely aimed at financing the post Covid measures adopted by the government related to income support and employment protection, strengthening the national health system and supporting Italian families as well as firms.

It is recalled that, the BTP Futura has semi-annual nominal coupons calculated on the basis of a preset coupon rates increasing over time (the so-called “step-up mechanism”). The bond will have a maturity of 10 years and a final bonus, on the nominal amount purchased, equal to the average nominal GDP annual growth rate over the bond life as recorded by ISTAT (the National Bureau of Statistics), with a 1% floor and 3% cap, to investors who purchase the bond during the placement period and hold it until the final maturity.

The bond will be placed at par (price equal to 100) through MOT, the retail Borsa Italiana’s screen-based market for securities and government bonds, through two dealers: Banca IMI S.p.A. and Unicredit S.p.A. The placement does not entail any cap or allotment hence guaranteeing the entirely satisfaction of the demand, except for the faculty of the MEF to close the issuance earlier. In any case, the possible early closing will not take place before Wednesday 8th of July, thus guaranteeing to individual investors at least three full days of placement. In case of early closing at 5.30 p.m. of the third or fourth day of the placement, the definitive annual coupon rates will be set during the morning of the day after the closing of the placement. The settlement date of all executed purchase orders is in one day and coincides with the accrual date.

Moreover, there are no fees to be borne by investors at issuance, while the taxation treatment is equal to 12.5 % and the Inheritance Tax does not apply, as for all government securities.

In addition to purchase the bond in banks or post offices, it is possible to purchase the BTP Futura directly on-line, through any home-banking system having an on-line trading feature, or through the new bond booking features offered by banks in order to cope with the containment measures of these months.

Please note that all the documents that illustrate the characteristics of the placement and distribution of the bond as well as the calculation method of the final bonus can be found on the website of the Ministry of Economy and Finance (www.mef.gov.it/btpfutura). In addition, a dedicated email box (btpfutura@mef.gov.it) is also available until the settlement date (14th of July 2020).

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.

Rome 07/03/2020
IT

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