New BTP Value from February 26th: what are the guaranteed rates, coupons, how long does it last and how much does it yield


By John

The new Btp Valore at the starting line. It starts on Monday 26 February the third issue designed for families and small savers. As in previous placements, the success of which the Treasury hopes to replicate, the bonds will have increasing quarterly coupons and an extra final premium, while the duration of the bond is extended. Starting from Monday, and until Friday 1st March (until 1pm) – unless early closure -, it will be possible to purchase the security, which has a duration of six years (compared to 4 years for the first placement and 5 for the second).

The coupons will be paid every three months, with pre-established and increasing returns over time, based on a 3+3 year 'step up' mechanism. The minimum guaranteed rates, communicated today by the Ministry of Economy, are 3.25% for the first three years, then rising to 4% from the fourth year onwards. At the end of the placement, the definitive rates will be announced which may be confirmed or revised upwards, based on market conditions at the closing of the issue. The ISIN code of the security during the placement period is IT0005583478. This time too, the final extra loyalty bonus returns for those who purchase the BTP Valore during the placement days and hold it until maturity: it is equal to 0.7%, a little higher than the 0.5% of the previous two operations. Small savers will be able to make purchases, with a minimum investment of 1,000 euros, exclusively through home banking, if enabled for the 'Olinè trading' functions, or by contacting their contact person at the bank or the post office where they have an account. current account with the securities deposit account. The usual preferential taxation for government bonds of 12.5% ​​and the exemption from inheritance taxes apply to the security, which can be purchased without commissions during the placement days.

Subscribers, as always, will be able to sell all or part of the security before its maturity, without constraints and at market conditions. The subscribed capital is guaranteed at maturity and the placement will take place on the Mot platform (the electronic market for bonds and government securities of the Italian Stock Exchange) through two dealer banks: Intesa Sanpaolo and UniCredit. The return of the BTP Valore also in 2024, after the first two issues of 2023, was announced at the end of the year by the Ministry of Economy in the 2024 Guidelines for the management of Italian public debt, given “the excellent feedback received from the market” and “also taking into account the general context of higher interest rates compared to the recent past”. In 2023, the Mef carried out two issues, in June and October, for a total amount of over 35 billion: in the June operation, when the Mef filled up with a record result of 18.14 billion, the rates were 3 .25% for the first two years and 4% for the following two; in October, however, against a collection of 17.2 billion, the yields were set at 4.1% for the first three years and 4.5% for the following two years. Meanwhile today the Treasury placed Short Term BTPs at auction (first tranche expiring in January 2026) for 4 billion euros with a yield of 3.41%. One billion 5-year indexed BTPs (maturing May 2029) were also placed with a rate rising to 1.73% from 1.61% in the previous auction. Finally, 30-year index-linked bonds (maturing September 2041) for 500 million euros were also offered. According to the tables published by Bloomberg, the yield obtained is 2.19%.