The second issue of the BTP Futura
October 21, 2020
The Treasury has announced, through the words of the General Manager Alessandro Rivera, the second issue of the BTP Futura, the characteristics of which will be announced on November 6, and the subscription will be possible until November 13. The bond will have a shorter duration than the first Futura BTP, from 8 to 10 years, but will have the same premium as the previous July issue.
Rivera explained that the premium for those who hold the title until maturity will be a minimum of 1% and a maximum of 3% depending on the growth rate of the Italian nominal GDP. The director of the Treasury also announced that over the next few months, the green light will be given to the issue of "green" BTPs that will be used to finance reconversion and environmental protection projects.
The BTP Futura will have nominal half-year coupons calculated based on predetermined fixed rates that increase over time (the so-called step-up mechanism). The coupons, paid every six months, will be calculated based on a fixed coupon rate for the first 3 years, which increases once for the next 3 years and a second time for the last 2 years of the bond's life before maturity.
The series of guaranteed minimum coupon rates of this second issue of the BTP Futura will be disclosed to the public on November 6, 2020, while the definitive coupon rates will be announced at the close of the placement, on November 13, and cannot, in any case, be lower than the minimum coupon rates guaranteed to be disclosed at the start of the placement. The coupon rate for the first 3 years will remain unchanged, while based on market conditions. Only the rates after the first one may be revised upwards at the end of the issue.
The share will be placed at par (price 100) in the market through the electronic MOT platform of Borsa Italiana through two dealer banks: Intesa Sanpaolo and UniCredit.
As already happened for the first placement, this issue will be reserved exclusively for private and similar savers and entirely dedicated to financing the costs of the new measures launched to cope with the resumption of the epidemic.
Company — Italy