Sitting as a protagonist for the new BTP Italy, the tricolor state title linked to inflation in our country and the proceeds of which will be dedicated to financing the fight against the economic effects of the Coronavirus pandemic. This morning, the first day of placement, the questions were booming. Shortly after 12 noon the requests had already exceeded two billion euros. For this tool, it is the first of three days dedicated entirely to retail, namely to small savers.
The Treasury offers the new BTP Italia in May 2025, with a 1.4% guaranteed coupon. Thursday morning will be dedicated to the institutional ones. The loyalty bonus that characterizes this type of bond and provided for those who keep the title until its natural exhaustion has been revised and doubled to 8 per thousand. It is an incentive for the public of the little ones. The current phase is of general uncertainty and the Treasury aims to make the new tool coming soon palatable even for small portfolios. Same line also for the duration that has been reduced to five years. Taxation will be 12.5%, as in the past.
With the new BTP Italy, the Treasury plans to raise around € 13-16 billion which will be used to finance the revitalization of the economy. With the previous edition, expiring October 2027 and a definitive coupon rate of 0.65%, the Treasury raised 6.75 billion at the end of October 2019.
Investors’ response to the new BTP Italia encourages the entire Italian paper segment. On the secondary market, the 10-year BTP makes 1.81% (-8 basis points compared to Friday), separated by a spread with respect to the Bund, which is down to 229 points (-13 low points).