Record-breaking Btp Valore subscriptions and features explained

The third day of subscriptions of the Btp Valore totaled 4,217,970,000 euros. This is the second highest amount ever recorded on the third day of issues dedicated to individual savers.

The numbers of the Btp Value

In the three days, a total of 14,845,261,000 euros was raised. A decidedly important figure that has conquered the primacy for the numbers reached. In second place is the sixteenth placement of the BTP Italia which was issued in May 2020, the total amount amounted to 13,997,606,000 euros. The placement of the Btp Valore will also continue tomorrow, 8 June, and therefore early closing seems to be increasingly a distant hypothesis.

Signed contracts

The data on the third trading day indicate the signing of 152,460 contracts and the average value calculated amounts to 27,666 euros. We recall that the minimal cut required is 1,000 euros. Individual savers definitely appreciated the financial product. During the first three days of issue, the number of contracts subscribed stood at 523,426 with an average denomination of 28,362 euro.

The possible risks

Il risk it could be related to inflation, especially if it is higher than 4%. A non-existent danger for Italy’s BTPs, which by definition are indexed to inflation which, if it increases, yields also increase and vice versa. Another possible risk concerns the possibility of an Italian default. In the event that the Italian state fails, as has already happened in Greece, it would no longer be able to pay off its debt and the BTPs, regardless of the type, would no longer have any value. However, this remains an extremely remote possibility.

Features

Il title it has a duration of 4 years and fixed returns that increase over time, it is the step-up mechanism and a extra loyalty reward equal to 0.5% calculated on the invested capital which will be given to those who hold the Btp Valore until maturity in 2027. The coupons are semi-annual and will be calculated on the basis of the minimum guaranteed rates which amount to 3.25% for the first and second year and 4.00% for the third and fourth year.