Italy sets 22.25% final coupon for new BTp Valore Insieme retail bond

A double issue for retail savers

Italy's Ministry of Economy and Finance (MEF) has published the minimum guaranteed coupon rates for the first double issue of BTp Valore bonds. The ministry, led by Giancarlo Giorgetti, announced the rates in a statement on 16 October. The bonds are reserved for individual savers and similar buyers, the so-called retail market. Subscriptions run from Monday, 19 October to Friday, 23 October, until 13:00, unless the offer closes early. Both five-year bonds mature in October 2031. The sale is the third retail issue of 2026 and the first time the BTp Valore has been offered in a double format.

The classic BTp Valore

The traditional bond pays coupons every three months on a stepped schedule. The rate is 3.70% in the first and second years, 4.10% in the third and fourth years, and 4.70% in the fifth and final year. Over five years these coupons add up to 20.30%. The bond trades under ISIN IT0005735201 during the sale. The rates can be confirmed or revised upward when the subscription period ends. Earlier BTp Valore and BTp Italia issues have raised more than 121 billion euros, and the ministry is again offering the product during a period of rising interest rates.

BTp Valore Insieme and the 22.25% payout

The second bond, BTp Valore Insieme (ISIN IT0005735227), pays no interim coupons. Instead it pays a single coupon of 22.25% at maturity, together with the return of capital. On an investment of 1,000 euros, that means 222.50 euros gross after five years on top of the sum paid in. This figure is higher than the 20.30% total of the classic bond. The gap reflects the time value of money: cash received early can be spent or reinvested, so an investor who waits until maturity receives a larger final amount. According to the ministry's terms, both bonds are set to deliver the same yield to maturity at issue, which is the rate that equates future cash flows with the issue price of 100%.

BTp Valore (classic), total coupons20.3%

BTp Valore Insieme, final coupon22.25%

BTp Valore (classic), total coupons

20.3 %

BTp Valore Insieme, final coupon

22.25 %

Data from the article text

Buying, selling and tax

Investors may buy one bond or both, either separately or together, since each has its own ISIN and an independent life. The minimum purchase is 1,000 euros. During the issue week the bonds are sold at par and without commission. Returns are subject to a reduced tax rate of 12.5% and are exempt from inheritance tax. Both bonds can be sold on the secondary market at any time, as with other BTp bonds. If the Insieme version is sold early, the holder receives a share of the total expected yield, calculated in proportion to the period the bond was held in the securities account. The early closure option has not been used so far in this kind of offer.

Context and the rate environment

The issue comes as the European Central Bank has raised interest rates in response to inflation driven by the conflict in Iran and the blockade of the Strait of Hormuz, which pushed up gas, oil and fuel prices. The Treasury's stated aim is to place a growing share of public debt in Italian households' portfolios, a strategy it has pursued since the first issue in 2023. Officials present the offer as a way to reduce Italy's dependence on the moods of foreign investors. The stated goal of the double format is to let savers diversify across two bonds with different payment profiles.