New BTP valore launches: step-up yields and loyalty bonus for retail investors

From October 20 to 24, the Italian Treasury offers a new 7-year BTP Valore with quarterly rising coupons and a 0.8% loyalty bonus for those who hold it until maturity.

The countdown is on for the new BTP Valore, the government bond designed exclusively for individual investors. The next issuance will be available for purchase from Monday, October 20 until 1:00 PM on Friday, October 24, unless it closes early due to high demand. This edition will last seven years and introduces a major new feature: quarterly step-up coupons following a “3+2+2” structure—never used before for this instrument.

Investors who buy during the offering period and hold the bond until maturity will also receive a 0.8% loyalty bonus, providing an extra incentive to stay invested.

The Treasury will announce the minimum guaranteed rate and ISIN code on Friday, October 17. Currently, 7-year BTPs yield around 3.0% to 3.2% gross on the secondary market (about 2.7% net), but analysts expect the Treasury to offer a slightly higher return to attract retail investors—possibly around 3.4% to 3.5% gross, or about 3% net.

Simulations suggest a structure with increasing coupons: 2.5% for the first three years, 3.5% for the next two, and up to 4.5% in the final two years. This would result in a total gross yield of about 3.45%, or 3.02% net, including the loyalty bonus. A more conservative version—with an initial coupon of around 2.3%—would lower the gross return to 3.36%, or 2.94% net.

The bond can be purchased via home banking platforms (if enabled for trading) or by visiting a bank or post office. The minimum investment is €1,000, with no subscription fees.