New BTp Valore 2032 Placement: March & Increasing Coupons

There will be a new BTp Value available to families and this time too it will expire in 2032, having a duration of 6 years. The Treasury announced this on the afternoon of Thursday 5 February. The placement will be held from Monday 2nd to Friday 6th March, except for possible early closure. Subscribers who keep the bond in their portfolio until the last day will receive an extra payment of 0.8% (so-called “loyalty bonus”). The coupons they will be paid every 3 months based on a fixed rate increasing every 2 years: formula 2 + 2+ 2.

New BTp Value 2032, minimum rates revealed at the end of the month

The minimum guaranteed rates for the first 2 years, the third and fourth years and for the fifth and sixth years will be announced together with the ISIN code on Friday 27 February.

At the end of the placement, they may only be confirmed or revised upwards based on market conditions.

The new BTp Valore 2032 can also be subscribed online, if you have a current account equipped with the home banking. Alternatively, you can go to the bank or post office branch where you hold the securities deposit account needed to invest. The minimum amount that can be subscribed is 1,000 euros and multiples of 1,000 euros. No commissions will be paid during the placement. The tax, as for other government bonds, is 12.50% on coupons and loyalty bonus.

Tax benefits

Other tax benefits include exemption from inheritance tax and, since last year, also from ISEE declarations for total investments in government bonds and postal savings bonds of up to 50,000 euros. The latest issue in October attracted orders of 16.58 billion euros. The high interest found among savers has led the Italian state to frequently resort to this instrument, which has proven to be very important for consolidating confidence in our public debt.

Forecast on rising rates

Although the coupons will only be announced at the end of the month, we can make some predictions about their size, based on the current market conditions. The 6-year fixed coupon Treasury bond currently offers around 2.90%. Rounding to 3%, we can imagine that this will be the average yield of the new BTp Valore 2032. And since the rates will have to increase every two years, here is a possible structure from issuance to maturity:

• 2.50% for the first 2 years (0.625% quarterly)
• 3% for third and fourth years (0.75% quarterly)
• 3.50% for fifth and sixth years (0.875% quarterly)

In previous placements, the average order is now stable at 30-35,000 euros. On 30,000 euros, an average annual coupon of 3% gross, equal to 2.625% net, is equivalent to collecting an income flow of 787.50 euros, in addition to the 210 at maturity with the loyalty bonus. It should be noted that the new BTp Valore is the third retail bond in a row to be issued with maturity in 2032, after the placement in October and the one in June which concerned the BTp Italia. With the difference that in 2025 this was equivalent to issuing 7-year debt, while now we go down to 6 years. A medium-long duration and with an optimal time horizon for a standard family.

giuseppe.timpone@investireoggi.it