New BTp Valore coming soon for households: here's what coupons might look like
Placement from 2 to 6 March. Minimum coupons announced on 27 February, but at current rates up to 4%. Here are the calculations
by Morya Longo
Key points
- The BTp Value features
- Possible coupons
Iron is struck while it is hot. And the bond market, for Italia reduced by S&P's improved rating outlook, has been hot for some time. Thus, the Ministry of the Economy, after having collected a few days ago record orders of 157 billion euro for a new 15-yearBTp placed among global institutional investors, immediately turns to the market of small savers as usual at this time of year: yesterday it announced that between 2 and 6 March it will place a new BTp Valore (the seventh) intended exclusively for households.
The characteristics of BTp Valore
The new bond will have a duration of 6 years and increasing coupons over time, paid every three months, according to a 'step-up' mechanism that will increase interest every two years (formula 2+2+2 years). And this is the first novelty of this latest 'born' of the BTp Valore family: coupons will grow three times over the 6-year life of the bond, and the first time will happen only after 2 years. ù
In the last issue, for example, the leap up only occurred after the third year. Only the first BTp Valore, of 2023, became more profitable already after the second year, but that one had a duration of only four years. This time six. The 'ladder' of coupons, in short, will be more rhythmic and faster this time.
Otherwise, the characteristics of this security are more or less the usual. This time, too, there will be a loyalty premium for those who hold the security until maturity: the extra final premium (only for those who buy it during the placement days) will be 0.8% of the nominal capital invested. And even this is a little more than usual: only in the fourth and fifth editions had the loyalty premium been 0.80%, while the other times it had been between 0.50% and 0.70%. This time, too, the investment can start from a minimum of EUR 1,000, and savers will always be sure to see the required amount subscribed.
Again, there will be no commissions and taxation will be 12.5% (as for all BTp). It will be exempt from inheritance tax and up to 50 thousand euro invested will be excluded from the Isee calculation. Beware though: the 50-thousand euro threshold concerns all government bonds, not just this one. Those who already have 40 thousand, therefore, will only have an additional 10 thousand exempt from the Isee calculation. Once again, the placement will take place on the Mot platform through three dealer banks (Intesa Sanpaolo, UniCredit, and Banco Bpm) and two co-dealers (Mps and Iccrea).
