BTP Futura: information sheet available
New BTP Futura: the first 100% retail government bond with GDP loyalty bonus will last 10 years with 3 steps of fixed rates increasing over time
The Ministry of Economy and Finance (MEF) announces that the Information Sheet relating to the first issue of the BTP Futura is online, the first government bond dedicated exclusively to the retail saver, which will be placed from Monday 6 July to Friday 10 July 2020 ( until 13.00) and that it will be entirely used to finance the various measures envisaged for income support and job protection, the strengthening of the national health system and support for Italian families and businesses as well as the relaunch of the national economy. The bond will have a maturity of 10 years and a loyalty bonus equal to 1% of the invested capital will be provided, which may increase up to a maximum of 3% of the subscribed amount, based on the average annual growth rate of nominal GDP. of Italy registered by ISTAT during the life of the security, for those who purchase it upon issue and hold it until maturity. The BTP Futura has nominal half-yearly coupons calculated on the basis of pre-established rates that increase over time (the so-called step-up mechanism).
The coupons, paid every six months, will be calculated on the basis of a fixed coupon rate for the first 4 years, which increases a first time for the next 3 years and a second time for the last 3 years of the bond's life before maturity. . The series of guaranteed minimum coupon rates of this first issue of the BTP Futura will be communicated to the public on Friday 3 July 2020, while the definitive coupon rates will be announced at the close of the placement, on 10 July, and cannot in any case be lower than the rates. guaranteed minimum coupons communicated at the start of the placement. Furthermore, the coupon rate for the first 4 years will remain unchanged, while based on market conditions only the rates subsequent to the first can be revised upwards. The security will be placed at par (price 100) on the market through the electronic MOT platform of Borsa Italiana through two bank dealers: Banca IMI SpA and Unicredit SpA
The placement does not provide for any breakdowns, nor will any maximum ceiling be applied ensuring complete satisfaction of orders, except for the faculty of the Ministry to close the issue early. Any early closure cannot however take place before Wednesday 8 July, thus guaranteeing the saver at least three entire placement days. If the early closing occurs at 17.30 on the third or fourth day of placement, the definitive coupon rates will be fixed on the morning of the day following the closing date of the placement.
No commissions will be applied to the subscriber for purchases on placement days, while the usual discounted tax on government bonds of 12,5% and the exemption from inheritance taxes will continue to be applied as for other securities of state. In the coming days, the MEF will publish the Technical Note for intermediaries and the FAQs on the Public Debt website, to provide savers and market operators with all the useful information to take part in the imminent placement.