Italy's BTP Valore double issue raises 16.6 billion euros as Treasury lifts coupons

Strong retail demand

The Italian Treasury closed the double placement of the BTP Valore and BTP Valore Insieme at 13:00 on Friday, 23 October, after five days of sales. The two bonds raised 16.62 billion euros in total across more than 560,000 contracts. The classic BTP Valore collected 12.07 billion euros from 385,962 contracts, while the new Insieme product raised 4.55 billion euros from 174,067 contracts. The total sits below the first three operations of the series, which each topped 17 billion euros, but above the sixth and seventh issues at 16.57 and 16.22 billion. The offering was the third and final one this year aimed only at small investors, and it ranks fourth by total proceeds among the eight issues so far. The ministry's note says the amounts match the value of purchase contracts concluded at par on the Mot, placed through the dealers Intesa Sanpaolo and UniCredit and the co-dealers Banca Monte dei Paschi di Siena and Banco Bpm.

Ciro Pietroluongo, director general of Mts, the trading platform of Borsa Italiana and the Euronext group, welcomed the response from retail investors.

The results reflect an excellent response from retail investors and confirm the appeal of a now well-established instrument.

Coupons revised upward at closing

In a note issued at closing, the Ministry of Economy and Finance (MEF) raised the coupon rates it had announced on 16 October for both bonds. It said the change took account of the evolution of market conditions and kept the two instruments equivalent in total return. The classic BTP Valore now pays 3.75% in the first two years, 4.20% in the third and fourth, and 4.75% in the fifth, up from initial rates of 3.70%, 4.10% and 4.70%. Its coupons are paid every three months. Insieme's single coupon, paid at maturity together with the capital, moved from 22.25% to 22.70%. One report printed 22.75% for Insieme, but the ministry note gives 22.70%. Both bonds carry an issue date of 27 October 2026 and mature on 27 October 2031.

Bond yields and oil prices

Market conditions shifted over the previous week, with yields on European and global sovereign bonds rising amid persistent Middle East tensions and concerns about borrowing by companies building infrastructure and artificial intelligence. Oil prices were also climbing on Friday, 23 October. Brent crude reached 117 dollars a barrel for the first time since April, while WTI traded above 103 dollars. Iran kept up attacks on tankers passing through the Strait of Hormuz, and the Ttf gas benchmark rose above 93.21 euros per megawatt hour. Milan's stock market closed 0.36% higher, supported by Eni, while Frankfurt fell 0.75% and Paris 0.36%. The Italian 10-year yield dropped to 4.56%, with the German Bund at 3.34% and the spread between the two at 122 points.

What the two formats mean for savers

Savers could choose between two structures. The classic BTP Valore pays coupons every three months, with rates that step up over the five years, a mechanism meant to discourage selling before maturity that has been used before. Insieme returns a single coupon of 22.70% at maturity, together with the invested capital, and the higher final percentage compensates for inflation eroding the value of money over five years. The ministry dropped the loyalty premium that earlier issues paid at the end of the term. Investors who sell before maturity do so at market prices, which may differ from the price they paid. Interest income, taxation and any loyalty bonus therefore all weigh on the choice between the two formats.