BTP Futura, the government bond that supports the country’s growth

BTP Futura, the government bond that supports the country’s growth
BTP Futura, the government bond that supports the country’s growth

BTP Futura – Because Italy grows with you. From 8 to 12 November 2021 unless early closure. Duration 12 years. Double loyalty bonus

The fourth issue, the second of 2021 after that of April, continues the objective of supporting the national economy. Its proceeds are entirely dedicated to financing the interventions adopted during the year for the country’s economic growth.

The security will be placed on the market by Monday 8 November to Friday 12 November 2021 (until 13.00), unless early closure. In any case, at least three full days of placement will be guaranteed.

The novelty of the fourth Futura BTP is the duration, equal to 12 years, instead of the 16 years of the previous placement.

The ‘double’ premium linked to the national GDP

As for the previous Futura BTPs, a loyalty bonus, linked to the growth of the national economy during the life of the title. As in the third issue, the premium will be paid at two different times.

In fact, it is expected that at the end of the first eight years life of the security, the investor who has held the Futura BTP since its issue will be entitled to an intermediate premium with a minimum of 0.4% of the 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 bond to the year preceding the maturity of the first eight years of the bond’s life.

At the final deadline of the security, after four years from the interim premium, only investors who have continued to hold it without interruption from issue to maturity will be paid the final prize which will include two components: the first equal to the remaining 60% of the average annual growth rate of nominal GDP recorded in first eight years life of the title, with a minimum of 0.6% up to a maximum of 1.8% of the invested capital; the second equal to 100% of the average annual GDP growth rate recorded since ninth to twelfth year, with a minimum of 1% and a maximum 3% of the invested capital.

The “step-up” coupons with fixed yields increasing over time

As in the previous issues, the BTP Futura will present nominal half-yearly coupons calculated on the basis of fixed rates predetermined and increasing over time according to the so-called mechanism step-up, which for this issue will include 3 step. In particular, the coupons will be paid on the basis of a fixed coupon rate for the first 4 years, which will increase a first time for the next 4, a second time for the remaining 4 years.

The series of guaranteed minimum coupon rates of this fourth issue of the BTP Futura will be disclosed to the public Friday 5th November 2021 and may be revised upwards, based on market conditions, at the close of the placement, Friday 12 November 2021.

The coupon rate for the first 4 years will in any case remain unchanged, while only the rates of the two may be revised upwards at the end of the issue. step subsequent.

How to subscribe to BTP Futura

The security will be placed at par (price 100.00) on the market through the electronic MOT platform of Borsa Italiana through the dealers banks.

The placement does not provide for any allocations, nor will any maximum limit be applied ensuring complete satisfaction of the orders, except for the right of the MEF to close the issue early. To allow the maximum participation of citizens in the issue, the eventual early closure however, it cannot take place before Wednesday 10 November, thus guaranteeing at least three full days of placement. If the early closure takes place at 5.30 pm on the third or fourth day of placement, the definitive coupon rates will be set on the morning of the day following the closing day of the placement.

For the subscriber there are no commissions on purchases on placement days, while on the yield of the bond is applied the usual subsidized taxation for government bonds equal to 12.5% ​​and the exemption from inheritance taxes, coupons and loyalty premiums, as for other government bonds. The security can be subscribed by contacting your contact person in the bank or post office where you have a securities account or through your home banking, if enabled for online trading functions.

For more information, the dedicated mailbox ([email protected]) managed by the Treasury Department will be active again until the title is settled.

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