BTP Italia

  • The first government bond available on MOT

    Trade in a quick and easy

BTP Italia is the first instrument directly sold on the secondary market through the MOT platform.

The new service represented by this distribution channel offers investors the possiblity to buy the securities, exploiting the efficiency of Millenium Exchange platform, directly on the market and for the issuers, it offers the opportunity to avoid the uncertainty about the outcome of the offer and issue only the total amount requested.

The innovative process (first issue of the BTP Italia dated March 2012) starts with a distribution period in which conditional contracts are concluded. Once this period is finished and the issuer and the financial instruments admission requirements are satisfied, the admission will become final and the date for the start of trading on the MOT market will be established.

Orders that can be entered during the distribution period by the market participants and the retail investors are buy orders only. Market orders or limit orders at Issue price only.

The distribution period will be characterized by a continuous trading phase from 9.00 to 17.30.

What is the BTP Italia?

BTP Italia is a government security that provide investors with the protection against an increase in the level of prices in Italy: both the coupons, which are paid semi-annually, and the principal, the revaluation of which is also paid semi-annually, are indexed to the Italian inflation, as measured by ISTAT – the Italian National Bureau of Statistics - through the FOI national index, “Prezzi al consumo per le famiglie di operai e impiegati”, with the exclusion of tobacco products. As a result of the indexation mechanism employed, the principal subscribed is revalued every six months, with the holder of the security thus recovering any loss of purchasing power during this period. Furthermore, the coupons, which are also paid on a semi-annual basis, yield a constant minimum return in real terms. Indeed, the amount of each coupon is calculated by multiplying half the annual real rate of interest (fixed upon issuance) by the subscribed principal, which is revalued semi-annually in relation to the actual inflation of the semester. At the end of its four-year maturity, the BTP Italia guarantees the reimbursement of the nominal face value subscribed.

Furthermore, the securities pay a final bonus to all the investors (physical persons only) that purchase the instruments during the placement period and hold them until maturity.