Introduction sectionBTP Futura: the new Italian government bond targeted to retail investors will start from 6th of July

BTP Futura: the new Italian government bond targeted to retail investors will start from 6th of July

BTP Futura will be the name of the new government bond exclusively targeted to individual investors and other persons similarly classified (the so-called retail market). The first issuance will start from Monday, 6th of July and it will end on Friday, 10th of July (until 1.00 p.m).


BTP Futura has been conceived for “the future of Italy”. As anticipated in the 2020 Public Debt Management Guidelines update this issuance will be fully aimed at financing the last measures adopted by the Government to cope with the emergency from Covid-19 and support the country’s recovery.


BTP Futura will have a simple and innovative coupon structure, conceived to reward investors who hold the bond until its final maturity. In fact, the coupons will be set on the basis of a preset path of increasing rates over time (the so called “step-up” mechanism). The series of guaranteed minimum interest rates of this BTP Futura issuance will be announced on Friday, 3rd of July, just before the issuance. The final ones will be set at the end of the issuance. There are no cap or allotment: the demand, with a minimum lot of 1.000 euros, will be completely satisfied during the issuance days, but the MEF reserves the right to close the issuance earlier.


In line with the aim of supporting the national recovery, the final bonus is linked to the Italian nominal growth. In fact, the final bonus, paid only to investors who purchase the bond at issuance and hold it until its final maturity, will be set equal to the average nominal GDP annual growth rate over the bond life as registered by ISTAT (the National Bureau of Statistics) with a 1% floor and 3% cap.


The first BTP Futura issuance will have a maturity between 8 and 10 years: the final decision regarding the bond maturity will be announced on Friday, 19th of June. The issuance will be placed on the MOT (the Borsa Italiana’s screen-based market for securities and government bonds) through two dealers: Banca IMI S.p.A. and Unicredit S.p.A.


The bond can be purchased through the same channels used by the retail investors for the BTP Italia liaising with their contact person in the bank or at the post office. Considering the current emergency situation and in order to allow the widest possible participation by retail investors, investors can purchase the new bond directly on-line, through any home-banking system having an on-line trading feature.


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