The Treasury ready for the second issue of the BTP Futura. The placement, which starts on Monday 9 November and continues until 13 November, follows that of July, with an operation that last summer allowed a collection of 6.1 billion euros among retail investors. Also for this new issue of the BTP Futura, which starts a few hours after the decision of Moody’s to confirm the rating on the Italian public debt with stable outlook, the recipients of the placement are the so-called Bot People, savers who typically subscribe to the securities issued by Via XX Settembre.
So much so that the Treasury reiterated through the mouth of Davide Iacovoni, general manager for public debt, that the issue meets the objective of both expanding the audience of retail underwriters, that is, families, and involving them in the effort aimed at facing the consequences of the epidemic crisis and relaunch the country’s economy.
The characteristics of the BTP Futura: duration 8 years, here are the minimum coupons
The Btp Futura in placement in two days will have a duration of 8 years (in the first issue they were 10 years) and the Treasury gave the details of the characteristics of the offer, fixing the series of guaranteed minimum coupon rates. The structure of the BTP foresees a mechanism with increasing remuneration based on time (and GDP): from the first to the third year the minimum return of 0.35%, from the fourth to the sixth year the minimum level of remuneration of 0.6%, while in the last two years it rises to 1% . Final rates, as specified in a Treasury note, will be announced at the close of the placement, ie on November 13, unless early termination. The final value of the coupons will in any case not be lower than the guaranteed minimum coupon rates.
The fidelity award
planned a fidelity award for those who buy upon issue and hold the security until the 8-year expiry, the premium will be equal to 1% of the invested capital, but could increase up to a maximum of 3% of the subscribed amount (all will depend on the annual GDP over the lifetime of the title). The proceeds of the operation will be entirely destined, as in the case of the BTP Italia and the previous BTP Futura, to finance the measures to deal with the health emergency and the economic crisis. The two previous issues guaranteed a total of around 20 billion euros.
Moody’s leaves the rating on Italy unchanged
The context that for now allows Italy to finance itself at relatively low costs, albeit in the face of strong growth in public debt, records the choice of Moody’s to leave the rating on Italy. In its creditworthiness assessment, the US agency also examined the maneuver being drawn up by the government. Just like last May, Moody’s chose not to change its opinion on Italy, confirming the rating BAA3, a crucial confirmation because it is the last step before the junk bond group. The agency expects a recovery in Italy in the first half of 2021.