the characteristics of the security and the yield – Corriere.it
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A new 8-year Btp Green is coming. The Ministry of the Economy and Finance has announced the new issue of the security that will finance sustainable investments, emphasizing that it will be an 8-year BTP and that the operation will be carried out in the near future, in relation to market conditions. The mandate for the syndicated placement of the new Btp Green, which will, as mentioned, have a duration of 8 years and expire on 30 October 2031, was entrusted to Banco Bilbao Vizcaya Argentaria, Bnp Paribas, BofA Securities Europe, Crdit Agricole and Monte dei Paschi di Siena Capital Services Banca for companies.
Green investments entrusted to the State: from renewable energy
In the note announcing the issuance of the 8-year BTP Green, the Ministry of the Economy recalls that it is an Italian government bond dedicated to the financing of environmentally sustainable government spending in the following categories:
– renewable sources for the production of electricity and heat;
– energy efficiency;
– transport;
– prevention and control of pollution and circular energy;
– protection of the environment and biological diversity;
– research.
The goals respond to the European Taxonomy of Sustainable Activities and the United Nations 2030 Sustainable Development Goals.
The characteristics of the BTP Green
The first green bond of the Italian state, or rather the debut on the market of bonds specialized in the public financing of sustainable projects, arrived in March 2021.
But what distinguishes the green title? Here, the link to the Mef website which outlines the characteristics of the Btp Green.
The 2021 issue was much longer, maturing in 2045. And the Treasury closed the placement of the first Btp Green with a collection of 8.5 billion euros against a demand of more than 80 billion euros. The yield had been set at 12 basis points above the BTP maturing in March 2041 (at 1.5%, it was a period of low interest rates and low inflation).
It had not been placed in the auction, but with the union formula and reserved for institutional investors. However, nothing prevented even private citizens from buying it once it had landed on the secondary market. This issue too, maturing in October 2031, will be dealt with under the syndicate formula and therefore not immediately available to savers.
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