Introduction sectionTreasury Bonds Step-up (BTP Futura)

Treasury Bonds Step-up (BTP Futura)

BTPs Futura are the only government securities reserved exclusively for individual savers and other similar investors (the so-called retail market).

 

They are called "Futura” (Future) because they are designed to protect savings at the same time as also supporting the "future of the country", with particular reference to overcoming the health and economic crisis caused by COVID-19.

 

The semi-annual coupons will increase over time based on a "step-up" mechanism, with predetermined minimum yields. The series of minimum rates will be disclosed before the issuance and may be confirmed or revised (only upwards) upon closing.

 

The BTPs Futura will also pay a loyalty premium computed as follows.

 

For the first and the second issuance, with a maturity of 10 and 8 years, respectively, the premium shall be equal to 1% of invested capital, although this guaranteed minimum value may increase, up to the predetermined maximum of 3%, depending on the average annual growth rate of Italian GDP, based on ISTAT figures (Italian National Institute of Statistics) throughout the duration of the security itself.

 

For the third issuance, with a 16 years maturity, the investor who will have been helding the securities since the placement period, for the first 8 years, will receive an intermediate premium with a minimum of 0.4% up to a maximum of 1.2% of invested capital, equal to 40% of the average annual growth rate of Italian nominal GDP. It will be recorded from the year of issue to the one preceding the expiry of the first eight years of the bond’s life. At the final maturity, the investor who will have been helding the securities since their issuance will be paid the final premium consisting of two components:

  • the first one, equal to the remaining 60% of the average annual growth rate of Italian nominal GDP, as recorded in the first eight years of the bond's life, with a minimum of 0.6% up to a maximum of 1.8% of invested capital;
  • the second one, computed on the basis of the average annual growth rate of Italian nominal GDP, from the ninth to the sixteenth year, with a minimum of 1% and a maximum of 3% of invested capital.

 

The BTPs Futura will be placed on the MOT platform (Borsa Italiana's electronic bond and government securities market).

 

Investors can purchase these securities in banks or post offices or online through their internet banking, if authorised to use the trading function.

 

For more information see the Faq BTP Futura.

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