After the success of the first edition, Btp Valore, the government bond specially designed for small Italian savers, is back. The bond will have a maturity of 5 years (not 4 years as in the previous issue) and a maximum ultimate loyalty bonus will be given to those who buy it on placement days and hold it until maturity. The amount of the extra bonus will be announced by the Ministry of Economy and Finance in the next few days. The novelty of this new issuance is that for the first time, with a government bond, savers will be given quarterly coupons to be calculated over predetermined and increasing rates over time, through a mechanism called step-up.
We’ll have to wait until September 29 to find out the underlying return level. The placement will take place on the Mot platform (the electronic market for Borsa Italiana’s bonds and government bonds) through two intermediary banks: Intesa San Paolo SpA and Unicredit SpA
How and where to subscribe to Btp Valore?
Btp Valore is exclusively dedicated to the retail market, i.e. small savers who can subscribe through their home banking if their online trading functions are enabled. You can also contact your contact person at the bank or post office where you have a security deposit account and current account. The investment can start from a minimum of 1,000 Euros and has no maximum limit. Government bonds can be purchased at nominal price (100 TL) and commission-free on placement days.
Btp Valore: Who is better to invest?
Subscribing to Btp Valore is easy and has a guaranteed capital; this is a good solution to counter the negative effects of inflation on uninvested savings. It is a suitable investment especially for risk-averse people and those who have excess liquidity in their current accounts. Moreover, it is an investment with no time limit. As always, subscribers will be able to sell all or part of the collateral before its maturity, without restrictions and under market conditions.
Another advantage is that the investment cost of Btp Valore is very low. There are no bank commissions to be paid by investors for purchases during issuance. It also enjoys privileged taxation on accrued interest (12.5%) and exemption from inheritance tax on coupons and loyalty bonuses.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
