The Ministry of Economy and Finance (MEF) announces the publication of the Information Sheet and the Technical Note relating to the third issue of the BTP Futura, the government bond dedicated exclusively to the retail saver, which will be placed from Monday 19 April to Friday 23 April 2021 (until 13.00), unless early closure.
The proceeds from the placement will be used to finance the measures for economic recovery from Covid-19 and the state expenses destined to tackle the pandemic, including those relating to the vaccination campaign.
The bond will have a maturity of 16 years and a double loyalty bonus will be provided: at the end of the first eight years of the bond's life, the investor who has held the Futura BTP since its issue will be entitled to an intermediate premium equal to 40% of the average of the nominal GDP growth rate recorded in the first eight years of the bond's life, with a minimum of 0,4% of the invested capital, up to a maximum of 1,2%, At final maturity (after the following eight years ), investors who have continued to hold the security without interruption from the issue until maturity, will be paid a final premium which will include two components: the first equal to the remaining 60% of the average of the GDP growth rate recorded in the first eight years of the title, with a minimum of 0,6% up to a maximum of 1,8%; the second equal to 100% of the average GDP growth rate recorded from the ninth to the sixteenth year, with a minimum of 1% and a maximum of 3% of the invested capital.
The BTP Futura has six-monthly nominal coupons calculated on the basis of pre-established rates that increase over time (the so-called step-up mechanism). The coupons will be calculated on the basis of a given fixed coupon rate for the first 4 years, which increases a first time for the next 4 years, a second time for the next 4 years and finally a third time for the remaining 4 years of the bond's life. before the deadline. The series of guaranteed minimum coupon rates of this first issue of the BTP Futura will be disclosed to the public on Friday 16 April 2021, while the definitive coupon rates will be announced at the close of the placement, on 23 April, 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 share will be placed at par (price 100) on the market through the electronic MOT platform of Borsa Italiana through two bank dealers: Intesa Sanpaolo SpA and Unicredit SpA fulfillment of orders, unless the Ministry has the right to close the issue early. Any early closure cannot in any case take place before Wednesday 21 April, thus guaranteeing the investor at least three full placement days. If the early closing occurs at 17.30 pm on the third or fourth day of placement, the definitive coupon rates will be set on the morning of the day following the closing date of the placement and can only be confirmed or revised upwards, based on market conditions.
No commissions will be applied to the subscriber for purchases on placement days, while the usual subsidized taxation on government bonds equal to 12,5% and the exemption from inheritance taxes as for the other bonds will continue to be applied to the bond yield. of the Multi-year Treasury.
The Information Sheet and the Technical Note for intermediaries can be consulted on the Public Debt website, where the FAQs will also be published, to provide savers and market operators with all the information useful for taking part in the upcoming placement.