The Treasury returns to the Green BTP, expiring in 2037 for the security that finances sustainable initiatives


By John

The Treasury “reopens” green BTPs, returning with a new issue of the security that finances sustainable initiatives two months after the previous one. Close deadline, as already in 2023 when two short-distance issues followed one another, one in March and one in April, which follows by a few days the collection of over 11 billion euros through the BTP value and which will bring the total coverage of the requirement closer in the medium-long term 2024 – indicated at 360 billion euros – to 50% in less than five months.

The new issue – syndicated through Bnp Paribas, Crédit Agricole, Deutsche Bank, NatWest and UniCredit – will expire on 30 October 2037. Above 10 years, a duration that could limit the final amount which will be placed in a range between five and 10 billion euros.

Much will depend on the volume of orders, which typically come from a diversified audience of investors, including geographically: in the issue a year ago, with over 53 billion euros of orders and a total of 10 billion placed, over 70% were ESG investors, almost 43% fund managers, almost 63% foreign investors.

The Mef is certainly proceeding quickly: taking advantage of a two-week window without any particular appointments with the market, a placement of the new Green BTP of just six billion would bring the issues already completed to 175 billion, around 49% of the total to be placed , according to data published last December by the Mef, equal to 340-360 billion in medium and long-term securities.

Regular issues will resume at the end of the month with the Short BTP, the BTP indexed to euro area inflation and the BOT, close to the rating appointment with Moody's which has scheduled its rating on Italy for 31 May . Relatively calm spread, closing today at 135 basis points.