Italian Government Bonds (BTPs) Issuance Begins: Yield, Minimum Rates, ISIN

Introduction

Today, on May 6th, the issuance of BTP Valore begins, a government bond specifically designed for small investors.
This marks the fourth placement by the Italian Ministry of Economy and Finance (MEF).

Key Features

The minimum guaranteed coupon for the first 3 years is set at 3.35%, and for the subsequent 3 years (4th, 5th, and 6th year) at 3.90%.
The ISIN code for the placement period is IT0005594491.
This government bond matures in 2030, with a mechanism of increasing coupons, aiming to compete with the attractiveness of other BTPs in the market.

Emission Details

The auction for the new BTP Valore 2024, the fourth since its inception, commences on Monday, May 6th, and concludes on Friday, May 10th (until 1 pm), unless an early closure occurs.
This issuance is described by the MEF as a “special issuance [that] offers the opportunity to invest in a highly successful instrument”, targeting both new savers and those who have already invested in the previous three issuances.

Investment Opportunity

It is important to highlight that the BTP Valore is specifically tailored for small savers.
The duration of the bond in the upcoming May auction is 6 years, with a 3+3 years “step-up” coupon mechanism.
The guaranteed minimum rates are 3.35% for the 1st, 2nd, and 3rd year; and 3.90% for the 4th, 5th, and 6th year.
Additionally, there is a final bonus of 0.80% for investors holding the BTP Valore until its maturity in May 2030.

How to Purchase

As with the previous three placements, BTP Valore is solely dedicated to small investors who can acquire it through their home banking platform if they have a securities account, or through their bank representative at a post office if they have a securities account there as well.
Please note the taxation on government bonds is 12.5%, applied to received coupons and loyalty bonuses.

Additional Benefits

Furthermore, there is an exemption from inheritance taxes and, as per the 2024 Budget Law, investments up to 50,000 euros are excluded from the calculation of ISEE.
It’s important for investors to consider market conditions when buying or selling their bonds.

To provide liquidity, UniCredit and Intesa Sanpaolo will act as dealers, and the placement will occur on the MOT, the Italian Stock Exchange’s electronic market for bonds and government securities.