BTP Italia: Strong Retail Demand and Competitive Returns
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On May 28, the second day of the retail placement for the new BTP Italia, 15,753 investors placed orders totaling €436 million. The inflation-linked bond offers a 1.85% minimum coupon and a 1% loyalty bonus for those holding it to maturity.
The first day saw €3.14 billion in demand, and analysts expect total subscriptions to reach around €10 billion—consistent with past issues, such as the €9.92 billion raised in March 2023.
The bond matures in June 2032 and pays semiannual coupons that include a fixed 0.925% rate plus capital adjustment for inflation. Based on current data, the estimated gross annual yield is 3.687%, or 3.225% net of taxes.
Compared to its nominal counterpart and European inflation-linked bonds, BTP Italia appears more attractive. It offers better inflation protection and favorable pricing, with a break-even inflation rate of 1.22%, lower than that of similar Btpei instruments.
The first day saw €3.14 billion in demand, and analysts expect total subscriptions to reach around €10 billion—consistent with past issues, such as the €9.92 billion raised in March 2023.
The bond matures in June 2032 and pays semiannual coupons that include a fixed 0.925% rate plus capital adjustment for inflation. Based on current data, the estimated gross annual yield is 3.687%, or 3.225% net of taxes.
Compared to its nominal counterpart and European inflation-linked bonds, BTP Italia appears more attractive. It offers better inflation protection and favorable pricing, with a break-even inflation rate of 1.22%, lower than that of similar Btpei instruments.