Introduction section Government Securities categories
Government Securities categories
The Ministry of Economy and Finance determines the regular issuance, on the domestic market, of eight categories of government securities available for both private/institutional investors:
Government Securities categories
- Treasury Bills (BOTs)
- Treasury Certificates (CCTs-eu)
- Treasury Bonds (BTPs)
- Treasury Bonds Green (BTP Green)
- Treasury Bonds Linked To Euro-Zone Inflation (BTPs€i)
- Treasury Bonds Linked To Italian Inflation (BTP Italia)
- Treasury Bonds Step-Up For Retail Investors (BTP Futura)
- Treasury Bonds For Retail Investors (BTP Valore)
Main characteristics of government securities are summarized in the following scheme.
| BOND | MATURITY | REMUNERATION | MINIMUM DENOMINATION | TYPE OF AUCTION | TAX RATE | REDEMPTION |
|---|---|---|---|---|---|---|
| BOTs | 3, 6, 12 months or less than 12 months (flexible BOTs) | Discount at issuance | € 1,000 | Competitive yield auction | 12.5% | At par, single payment at maturity |
| CCTs-eu | from 3 to 7 years | Semi-annual floating coupons, possible discount at issuance | € 1,000 | Marginal auction with discretional determination of price and quantity issued | 12.5% | At par, single payment at maturity |
| BTPs | 2, 3, 5, 7, 10, 15, 20, 30 and 50 years | Fixed semi-annual coupons, possible discount at issuance | € 1,000 | Marginal auction with discretional determination of price and quantity issued | 12.5% | At par, single payment at maturity |
| BTP Green | from 8 to 25 years | Fixed semi-annual coupons, possible discount at issuance | € 1,000 | Marginal auction with discretional determination of price and quantity issued | 12.5% | At par, single payment at maturity |
| BTPs€i | 5, 10, 15 and 30 years | Semi-annual real coupons, possible discount at issuance and revaluation of principal at maturity | € 1,000 | Marginal auction with discretional determination of price and quantity issued | 12.5% | Single payment at maturity |
| BTP Italia | from 4 to 8 years | Semi-annual real coupons, revaluation of principal on a semi-annual basis, bonus payment at maturity1 | € 1,000 | Direct placement on the MOT, price at par and coupon rate determined at the end of the placement period | 12.5% | Single payment at maturity |
| BTP Futura | from 8 to 16 years | Semi-annual coupons with step-up mechanism with increasing rates and bonus payment at maturity2 | € 1,000 | Direct placement on the MOT, price at par and coupon rates determined at the end of the placement period | 12.5% | Single payment at maturity |
| BTP Valore | 4 years | Semi-annual coupons with step-up mechanism with increasing rates and extra bonus payment at maturity3 | € 1,000 | Direct placement on the MOT, price at par and coupon rates determined at the end of the placement period | 12.5% | Single payment at maturity |
1The individual investor (natural person) who purchases the BTP Italia during the placement period and holds them until maturity is entitled to a bonus payment which has a value from 0,004€ to 0,010€ per euro of the nominal value of the investment.
2The individual investor (natural person) who purchased the first and second issue BTP Futura, respectively with a duration of 10 and 8 years, during the days of the placement period and held them until maturity, will be paid the so-called "loyalty bonus" with a gross value between 1% and 3% of the nominal value of the investment, based on the average annual growth rate of Italy's nominal GDP recorded by ISTAT over the life of the security.
Regarding the third and fourth issue, with a duration respectively of 16 and 12 years, to the natural person investor who buys the BTP Futura during the days of the placement period and holds without interruption until the end of the first eight years of life, will be paid an intermediate premium with a minimum equal to 0.4% of invested capital, up to a maximum of 1.2%, equal to 40% of the average annual growth rate of nominal GDP recorded from the year of issue of the security to the year preceding the maturity of the bonds first eight years of the title's life. At the final maturity of the bond, the individual investor who has held the bonds since issue will be paid the final premium consisting of two components: the first, equal to the remaining 60% of the average annual growth rate of nominal GDP recorded in the first eight years of the security's life, with a minimum of 0.6% up to a maximum of 1.8% of the invested capital; the second, calculated on the basis of the average annual growth rate of nominal GDP from the ninth to the sixteenth (for the last issuance, twelfth) year, with a minimum of 1% and a maximum of 3% of invested capital.
3The individual investor (natural person) who purchases the BTP Valore during the placement period and holds them until maturity is entitled to a bonus payment which has a value of 0,005€ per euro of the nominal value of the investment.