There was a record demand for the issuance of the new 10-year and 20-year Green BTP, announced by MEF yesterday, through the union of banks. According to the ministry’s statement, the amount issued for the tenth anniversary was equal to 13 billion euros, against a demand exceeding 140 billion euros. In the 20-year-old BTP Green, the amount exported was 5 billion euros against a demand of approximately 130 billion euros.
Returns of two new financial instruments encouraged by the state
The new 10-year BTP will expire on 1 August 2035, will be effective from 15 January 2025, and the annual rate of 3.65% will be paid by semi-annual coupon. The security was placed at a price of 99.577, representing a gross annual return of 3.733%.
Regarding the 20-year BTP Green, the bond matures on April 30, 2046, has a vesting date of January 15, 2025, and an annual rate of 4.10% will be paid in two semiannual coupons. The security was placed at a price of 99.465, representing a gross yield of 4.181%.
The settlement of the operations in question was determined as January 15. The placement was carried out through a syndicate consisting of six lead managers, namely Banca Monte dei Paschi di Siena, Bnp Paribas, Citibank Europe, Crédit Agricole Corp, NatWest Markets and UniCredit, with Italian government bond experts as other co-managers. .
Translation: Savers will still have to wait a few days to invest, and they can do so through the bank they trust. But the real innovation of this round of emissions is the green BTP following the positive experience in 2024.
What is Green BTP and why is it different?
Green BTPs are Italian government bonds aimed at financing projects that have a positive impact on the environment, in line with the criteria of the European Taxonomy and the United Nations Sustainable Development Goals. The collected resources are used for interventions such as re-characterizing the energy of buildings and developing sustainable transport, including the electrification of railway infrastructures and routes.
In 2024, with a BTP Green issue maturing in 2037, record demand of 84.4 billion euros was raised, 80% of which came from foreign investors, and Italy’s role in the sustainable investment market was reinforced.
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.
