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Future BTP, second act. The Treasury has set the coupons for the second issue of the government bond thought “tailored” to individual savers and aimed at financing the cash needs required by anti-Covid measures and healthcare costs. The issue will start tomorrow, November 9, and will run throughout the next week (until 13). Here are the characteristics of the new anti-Covid BTP.
THE BTP CONNECTED TO THE COUNTRY DEPARTMENT: The proceeds from the issue will therefore go to finance all the expenses implemented in recent months to offset the economic effects deriving from the crisis triggered by Covid-19: from interventions to support the health system to those to support the fabric of small and medium-sized enterprises. Think, for example, of the interventions regarding refreshments for those commercial establishments that are most suffering the consequences of containment measures to stem the infections. The Mef explains: “In consideration of the persistence of the state of emergency, with the increase in infections and the new containment measures just launched by the Government, this issue will also have the objective, as for the first, of supporting the costs of State to strengthen the national health system, protect employment and support families, support businesses to resist the persistence of the crisis connected to the coronavirus pandemic “. And remember that “with the issue still in full lockdown of the Italian BTP in May 2020 and the first issue of the future BTP in July, both for the first time entirely aimed at financing the measures to stem the Covid-19 crisis, the Italians have decided to invest approximately 20 billion euros in the rebirth of the country “.
A “SIMPLE AND INNOVATIVE” COUPON STRUCTURE: But how is the coupon structure of the new BTP? The Treasury defines it as “simple and innovative”: the coupons of the new series of bonds are calculated on the basis of guaranteed fixed annual rates, predetermined before the issue, and increasing over time (with the so-called ‘step-up’ mechanism), as those of the first issue. It starts from 0.35% in the first three years, then goes up to 0.6% for the next three, while in the last two years it reaches 1%. Unlike the summer issue, therefore, the duration of the title passes from 10 to 8 years, so as to better respond to the needs of retail customers, who can struggle to commit their finances for a long period of time.
THE AWARD RELATED TO NATIONAL GDP: Furthermore, those who hold the title until maturity will have – as in the previous July edition – a loyalty bonus, which will be equal to a minimum of 1% up to a maximum of 3%. The exact value of the premium is set on the basis of the trend in Italian nominal GDP during the years of the bond’s life.
HOW TO SUBSCRIBE: BTP futura The new bond will be placed at par (price 100) on the market through the electronic platform MOT of Borsa Italiana through two dealer banks, Intesa Sanpaolo and UniCredit. In this way, explains the Treasury, “the future BTP can be purchased by contacting your contact person in the bank or at the post office, wherever you have a securities account, or online through your home banking system if enabled for trading. For the opening of a securities account or for the ‘physical’ purchase in the branch, operators will provide simplified digital procedures for booking future BTP “.
The placement does not provide for any divisions, nor will any maximum ceiling be applied, ensuring complete satisfaction of orders. No commissions will be applied to the subscriber for purchases on placement days, while the usual subsidized taxation on government bonds of 12.5% and the exemption from inheritance taxes will continue to apply to the bond yield.
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