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Contenuto principale

- BTP Futura: third issuance of the retail bond with bonus linked to national GDP

Guaranteed minimum annual coupon rates set at 0.75%, 1.20%, 1.65% and 2%. From Monday 19th of April the underwriting of the 100% retail bond to support the country’s economic recovery post Covid-19

Press release N° 74 of 04/16/2021

The Ministry of Economy and Finance announces that the series of guaranteed minimum annual coupon rates for the third issuance of the BTP Futura that will take place from Monday 19th of April until Friday 23rd of April, unless early closing, is set to:

  • 0.75% from the 1st to the 4th year;
  • 1.20% from the 5th to the 8th year;
  • 1.65% from the 9th to the 12th year;
  • 2% from the 13th to the 16th 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 coupon rates might be revised upwards based on market conditions.

The ISIN code of the bond for the placement period is IT0005442089.

The proceeds of the bond will be entirely aimed at financing the last measures adopted by the Government to support the economic recovery related to the Covid-19 pandemic crisis and the vaccination campaign.

As already stated, 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”). This time the bond has a maturity of 16 years and it grants a double bonus payment: in fact, at the end of the first eighth years, investors who purchase the bond at issuance will receive an intermediate bonus payment equal to the 40% of the average annual variation of the Italian nominal GDP over the first eight years of the bond’s life, as recorded by ISTAT (the National Bureau of Statistics), for a minimum of 0.4% and a maximum of 1.2% of the invested capital. After the following eight years, hence at the bond’s final maturity, investors who purchase the bond during the placement period and hold it until its final maturity seamlessly will receive a final bonus payment made of two components: the first one equal to the remaining 60% of the average annual variation of the Italian nominal GDP over the first eight years of the bond’s life, with a minimum of 0.6% and a maximum of 1.8% of the invested capital; the second one equal to the 100% of the average annual variation of the Italian nominal GDP as recorded by ISTAT from the ninth year until the sixteenth year of the bond’s life, with a minimum of 1% and a maximum of 3% of the invested capital.

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: Intesa Sanpaolo 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 21st of April, 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 bonus payment can be found on the website of the Ministry of Economy and Finance (www.mef.gov.it/btpfutura3). In addition, a dedicated email box (btpfutura@mef.gov.it) is also available until the settlement date (27th of April 2021).

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 04/16/2021
IT

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