Introduction sectionBTP Futura: 10 years maturity and 3 step-up coupons
BTP Futura: 10 years maturity and 3 step-up coupons
The new BTP Futura, the first government bond targeted only to retail investors, will have a maturity of 10 years.
The new Italian bond, that will be placed from 6th of July to 10th of July 2020 (until 1 p.m.), will have semi-annual nominal coupons based on a preset path of increasing rates over time (the so-called “step-up mechanism”). The coupons, paid with a semi-annual frequency, will be calculated on the basis of a preset coupon rate for the first 4 years, which will increase for the following 3 years, and it will increase again for the last 3 years of the bond’s life until maturity. The series of guaranteed minimum coupon rates of this first BTP Futura issuance will be communicated on Friday 3rd of July 2020, while the final coupon rates will be announced at the end of the placement period, on 10th of July, and in any case they will not be lower than the coupon rates initially set. Moreover, the coupon rate of the first 4 years will remain unchanged, while only the coupon rates of the following periods might be revised upwards based on market conditions.
Btp Futura, that will be entirely aimed at financing the measures adopted by the Government to support workers, families and enterprises and to strengthen the national health system, will grant a final bonus, on the nominal amount purchased, equal to the average nominal GDP annual growth rate over the bond life (from the year of issuance to the year before the bond maturity) as recorded by ISTAT (the National Bureau of Statistics), with a 1% floor and 3% cap, to investors who purchase the bond during the placement period and hold it until the final maturity (as of July 14th, 2030).
On line, on the website of the Public Debt, the term sheet of the BTP Futura.