June 19, 2020 / 10:04 AM / a month ago

Italy's retail-only 'BTP Futura' bond to mature in July 2030

MILAN, June 19 (Reuters) - Italy’s new debt instrument dedicated to retail investors only — the so-called ‘BTP Futura’ — will have a 10-year maturity, the Italian Treasury said on Friday.

The new bond, whose proceeeds will be entirely used to pay the high economic costs of the new coronovirus epidemic, will expire on July 14, 2030 and envisages for the yield a step-up mechanism in three phases.

The fixed yield is set to increase - after the fourth and after the seventh year - and includes a “loyalty premium” for investors who hold the bond until maturity which will be linked to Italy’s gross domestic product (GDP).

The first sale is scheduled from July 6 to July 10.

Writing by Alessia Pe, editing by Maria Pia Quaglia

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