The Ministry of Economy and Finance (MEF) has published the FAQ and the Technical Note about the new BTP Futura, the first government bond targeted only to retail investors, to be issued from 6th of July to 10th of July 2020. This issuance will be entirely aimed at financing the last measures adopted by the Government to cope with the Covid-19 related crisis and to support the country’s economic recovery.
In order to help investors in understanding the new bond’s features, a dedicated email box (btpfutura@mef.gov.it) is now available until the bond settlement date and during all future issuances. Please remind that to better understand the purchase procedures, sometimes even simplified, adopted by market operators to facilitate the bond subscription, it is strongly advised to contact the reference persons at the bank or Postal Office where the securities account is held.
The next press release will be on Friday 3rd of July 2020, when the MEF will announce the series of guaranteed minimum coupon rates of this first issuance of BTP Futura that might be confirmed or increased at the end of Placement Period depending on market conditions.
You can find the FAQs here
You can view the Technical Note here
BTP FUTURA main characteristics:
- Maturity: 10 years
- Preset fixed coupon rate increasing over time in 3 steps (1st-4th year, 5th-7th year, 8th-10th year)
- Final bonus equal to the average nominal GDP annual growth rate over the bond life (min 1% – max 3%)
- Issuance price at par (100) and bullet structure.
- Taxation of interest income and other incomes at a special rate of 12.5% and exemption for the inheritance tax
- No fees at purchase during the placement period.