BTp Italia Yes, everything you need to know about the new bond in 10 questions and answers

3) What are the main features of the BTp Italia Sì?

BTp Italia Sì are Italian government bonds linked to national inflation, dedicated exclusively to individual and related savers (so-called retail market). They pay coupons on a semi-annual basis calculated with a simplified mechanism based on the sum of only two components:

a) Fixed Component, equal to half the annual coupon rate, guaranteed even in the event of deflation;

b) Inflation Component, determined on the basis of the inflation accrued during the relevant six-month period as measured by the ISTAT consumer price index for blue- and white-collar households (FOI) net of tobacco.

The semi-annual coupon amount is calculated by applying the sum of the two components to the nominal principal amount subscribed. The inflation-linked revaluation is thus incorporated directly into the coupon and does not lead to a revaluation of the invested capital, which is reimbursed in a lump sum at maturity at the non-revalued nominal value.

4) What is the minimum annual coupon rate guaranteed by BTP Italia Yes?

The guaranteed minimum annual coupon rate is announced by the Treasury prior to the opening of the placement period and depends on the market conditions of the period. At the end of the placement period, the definitive annual coupon rate is also announced, which in any case cannot be lower than the guaranteed minimum rate.

5) What happens in case of deflation?

Deflation occurs when, in a given period, the benchmark consumer price index (FOI) decreases. Therefore, if there is no inflation during the six-month period, i.e. an increase in the reference index, the Inflation Component of the coupon is not paid. The Fixed Component of the coupon is instead always due and guaranteed even in the event of deflation.

6) What is the minimum lot that can be purchased at issuance?

BTP Italia Sì have a minimum lot size of EUR 1,000. Each order may be placed in multiples of that amount.

7) What is the expected taxation?

As with all other government bonds, the reduced taxation of capital and other income is 12.5%. Like all other government bonds, they are not subject to inheritance tax.

8) If I buy the BTP Italia Yes, will the amount invested be excluded from the ISEE indicator of economic and asset situation?

Government securities and other financial products guaranteed by the State are excluded from the calculation of the ISEE indicator up to a maximum limit of €50,000 in total. The answer is therefore affirmative, within the aforementioned limits and with reference to the nominal value held of the BTP Italia Yes, of the other government securities and postal savings products that are by definition guaranteed by the State.

9) What is the extra final prize?

The extra final premium is a bonus paid exclusively to those who purchase BTP Italia Sì bonds during the placement period and hold them until maturity. On the occasion of the first issuance, such premium will be 0.6 per cent, to be calculated on the non-revalued nominal amount purchased.

10) Do the provisions of the Transparency Decree apply to the BTP Italia Yes?

Yes, the provisions of the 'Decree for Transparency in the Placement of Government Securities' apply. In particular, there are no fees charged to the investor who purchases the security during the placement days.