The Ministry of Economy will be launching the fourth issuance of the BTP Valore, a government bond designed for small retail investors. This new issuance will have a 6-year maturity, with the capital repaid in May 2030. The guaranteed minimum coupon rates for the special BTP Valore issuance are 3.35% for the first three years and 3.90% for the last three years. The final coupon rates will be announced at the end of the placement period, and may be confirmed or revised based on market conditions at the closing date. Investors can expect quarterly coupons with increasing yields over time, thanks to a “step up” mechanism of 3+3 years. Those who hold the bond until maturity will receive an additional 0.8% return as a loyalty bonus. The bond can be purchased starting from 1,000 euros, with the assurance that the requested amount will be subscribed. During the placement period, the bond can be bought at par (price equal to 100) and without any commissions.
Like previous issuances, the BTP Valore can only be purchased by small investors through online home banking platforms, authorized for online trading, or by contacting their bank or post office where they have a current account with a securities deposit account. All government bonds are subject to a preferential tax rate of 12.5% on coupons and loyalty bonuses, as well as exemptions from inheritance taxes. Additionally, under the 2024 budget law, investments in government bonds up to 50,000 euros will not be considered for the ISEE calculation once the measure is fully implemented. Investors are free to sell all or part of their bonds before maturity, without any restrictions and at market conditions. The placement will take place on the MOT platform of the Italian Stock Exchange through two dealer banks: Intesa Sanpaolo and UniCredit.
An important feature of this issuance is the loyalty bonus of 0.8% of the invested capital for those who subscribe to the bond during the placement period and hold it until maturity in 2030. This represents an increase from the 0.7% bonus offered in the previous issuance in March 2024, according to the Aduc. Investors have the flexibility to sell their BTP Valore on the secondary market at any time, without any constraints, but they will forfeit the loyalty bonus if they sell before maturity. It is important to note that these bonds are designed specifically for retail investors seeking a secure investment option with a fixed income stream. The issuance of such government bonds is a strategic move to attract small investors who are looking for stable returns along with preferential tax treatment.
Overall, the BTP Valore represents an opportunity for small investors to secure their savings with a government bond that offers guaranteed minimum coupon rates and loyalty bonuses. By investing in this bond, investors can expect regular income payments and potential capital gains over time. The flexibility to sell the bond on the secondary market adds liquidity to the investment, while the preferential tax treatment and exemptions make it a tax-efficient option. With the issuance being managed by reputable dealer banks and taking place on a trusted platform, investors can have confidence in the security and reliability of the investment. Ultimately, the BTP Valore offers a blend of stability, returns, and tax benefits that make it an attractive option for small investors seeking to grow their savings in a secure and efficient manner.
