Overview
- Orders reached €5.4 billion across more than 152,000 contracts on the first day, outpacing the debut of the prior BTP Valore, according to il Giornale.
- The seven-year bond for individual savers is on sale from October 20 to 13:00 on October 24, with minimum step-up coupons of 2.6% for years 1–3, 3.1% for years 4–5, and 4.0% for years 6–7.
- At the announced minimums, the weighted average yield is about 3.25% gross, or roughly 2.85% net after the 12.5% tax on coupons, with the definitive rates set after the placement closes.
- Holders to maturity receive a 0.8% loyalty premium, and the security benefits from the standard tax advantages for Italian government bonds, including ISEE and inheritance tax exemptions as reported by ANSA.
- The bond is not inflation-indexed, so real returns depend on price trends, with reporting noting an estimated net real gain near 0.85% at 2% average inflation and a slight loss near 0.15% per year if inflation averages 3%; the sale comes as DBRS and Fitch have lifted Italy’s rating and the EU signals possible closure of the excessive deficit procedure if the deficit stays below 3%, with the MEF saying about 90% of its 2025 medium–long issuance plan is already covered.