June 8, 2020 / 10:52 AM / a month ago

Italy announces retail-only "BTP Futura" bond to fund coronavirus measures

ROME, June 8 (Reuters) - Italy’s Treasury set out plans on Monday for a new bond, for retail investors only, called the ‘BTP Futura’, whose proceeds will be entirely used to fund measures to help the economy recover from the coronavirus epidemic.

Italy is set to borrow half a trillion euros this year to help weather the pandemic and the Treasury is aiming to gradually double the amount of Italian sovereign bonds held by small investors.

The new bond will be put on sale for the fist time from July 6-10 and will have a maturity of between eight and ten years, with a final decision to be announced on June 19, a statement said.

The yield will increase over time and will include a “loyalty premium” for investors who hold the bond until maturity, which will be linked to Italy’s gross domestic product (GDP).

There will be a second issue of the bond after the summer, the Treasury’s debt management chief Davide Iacovoni said at a conference. (Reporting by Giuseppe Fonte, writing by Giulia Segreti, editing by Gavin Jones)

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