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BTP Italia 2018, the Fourteenth issue: main features

New BTP Italia 2018 in distribution starting from 19 November: all the details and the main features.



Nov 07 2018 - 15:53

On November the 19th it will take place the next issuance of BTP Italia, the Italian government bond indexed to the Italian inflation rate conceived principally to meet the needs of retail investors and placed through electronic platform of Borsa Italiana MOT. BTP Italia provides investors with the protection against an increase in the level of prices in Italy, with the semi-annual coupons that offer a guaranteed minimum annual real rate linked to the FOI index (Indices of Consumer Prices for blue and white-collar households with the exclusion of tobacco) to which the payment of the accrued inflation in the semester is added. In the event of deflation, the coupons are still calculated on the nominal principal amount invested, with a protection not only to the nominal principal, but also to the coupons.

Final bonus is added for those who buy the bond at issuance, during the phase of the distribution dedicated to individual investors and other persons similarly classified, and hold it until maturity.

How does BTP Italia work?

The bond will be placed through MOT of  Borsa Italiana in two phases: the First Phase, from Monday, November the 19th to Wednesday, November the 21st (three days which may be reduced to two in the case of early closing), where only individual investors and other persons similarly classified are admitted, while the Second Phase, which will take place in the morning of November the 22nd, will be reserved to institutional investors. In case total orders coming from the latter are greater than the final supply decided by the MEF, an allotment procedure will be activated. On the contrary, for individual investors and other persons similarly classified there will not be any rationing, as incoming orders will be fully fulfilled, as in all the previous issuances.

Bonds placed in the two phases will have different ISIN codes.


Distribution

  • Distribution Period: from Monday, November the 19th until Thursday, November the 22nd 2018, with two phases: the first three days, from November the 19th to November the 21st (which may be reduced to two in the case of early closure) will be reserved to individual investors and other entities with the same nature, while November the 22nd will be reserved to the remaining types of institutional investors. The final bonus will be awarded to the participants in the First Phase of the distribution who hold the bond until maturity, in accordance with what established in previous issuances.
  • Settlement date for trades executed during the Placement Period: 26 November 2018
  • Dealers selected by the Issuer for the distribution: Banca IMI S.p.A. and BNP PARIBAS
  • Fixed price for trades executed during the Placement Period (Issue price): 100%
  • Placement methods: First Phase: continuous trading phase only from 9.00 till 17.30 (no opening auction phase); Second Phase: Auction phase only, from 9:00 till 11:00, with a Pro-rata mechanism applicable.
  • Orders that can be entered during the Placement Period by the Market partecipants: buy orders only. First Phase: market orders or limit orders at Issue price only. Validity types: Fill-or-Kill (FOK), Immediate or Cancel (IOC) or DAY only. Limit orders with the DAY time in force will remain into the book also in the case of temporary absence of the Dealers. Second Phase: Market orders only with validity type GTC.
  • Minimum lot purchasable: First Phase: 1,000 Eur; Second Phase: 100,000 Eur.
  • Guaranteed minimum annual coupon rate: 1.45%.
  • ISIN code First Phase: IT0005351660


Please download:
- the Public Notice for the start of distribution;
- the Public Notice with the guaranteed minimum annual (real) coupon rate;
- the Public Notice with the codes and the name of the Dealer selected for the distribution during the Second Phase;
- the Public Notice for the start of trading.

Please download the MEF press release, the Term Sheet of the Fourteenth Issuance and the FAQ.

For more details please visit MEF website.


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