Btp Italia, more than 7 billion from small savers

The total orders for the new Btp Italia November 2028 at the end of the three days of offers reserved for retail customers amounted to 7.27 billion euros. This is what emerges from the data of Borsa Italiana.
The stock’s performance is exactly in line with that of the last June edition, when the Treasury had proposed an 8-year maturity.

Requests today amounted to 1.85 billion which must be added to the 5.42 billion collected in the first two days, yesterday and Monday. The 6-year bond will be offered to institutions tomorrow morning, from 10 to 12. Shortly before, the Treasury will either confirm or increase the guaranteed coupon by 1.6%.

Last June, on the occasion of the issue of the Btp Italia 2030, the Mef raised a total of 9.45 billion, of which 7.27 billion from retail investors. In recent days, the fixed income sector has recovered after a phase of declines. The rise in inflation with the consequent change of monetary policy by the European Central Bank (ECB) were among the causes of the negative performance of the bond markets this year.

The BTP and the periphery suffered particularly, with an increase of almost 300 basis points on the 10-year rate, even if the spread has retraced by more than 30 basis points in recent weeks. «In this context, however, opportunities have arisen and one of these is represented by securities linked to inflation, a variable that is seen, at least in Italy, between 6% and 7% for 2023 – explains Nicola Maino, Chief Investment Officer of Values ​​Asset Management -. In this context, the eighteenth tranche of the BTP Italia was launched by the Mef, a security indexed to Foi inflation ex tobacco».

The new bond (Isin IT0005517187) will have a duration of 6 years. The expiry is thus scheduled for next November 2028, with a guaranteed minimum real annual coupon of 1.6% (the definitive level will be known at the end of the placement) and with a loyalty bonus of 0.8% for those who purchase at issue during the placement phase and will hold the security until maturity. «Looking at the last issue of Inflation Linked Btp expiring 20230 of last June which currently has an annual gross of 1.8% (without considering the revaluation due to inflation), it can be hypothesized that the new issue, despite a duration of two years lower than the previous issue, could generate a guaranteed minimum gross annual return of around 1.6%-1.8% to which add the inflation revaluation of 8.6% if the inflation figure remains at one year on this level» explains the expert. Today Istat released the final data on October inflation in Italy which was equal to 11.8% on the year.