BTP Valore and BTP Più

BTP Valore is a family of government securities designed exclusively for individual savers (known as retail investors).

The first BTP Valore was issued in June 2023 and will mature in June 2027.

Here's how they differ from standard BTPs:

  • Interest payments (coupons) may be made quarterly, rather than every six months.
  • The issue price is always equal to the face value - for example, a bond with a face value of €1,000 will always cost €1,000 at issue.
  • The coupon amount increases over time, according to a schedule set at the time of issue (they are still fixed-rate bonds, but with a rising interest profile).
  • A loyalty bonus is paid to investors who hold the bond from issue to maturity - for example, 0.8 per cent of the face value.

 

BTP Più shares the same features as BTP Valore, but includes an extra option: if you bought the bond at issue, you can request early repayment of the full face value (i.e. your original investment) on a specific date.

This can be an advantage if market interest rates have risen significantly between the time you bought the bond and the early repayment date. That's because when interest rates go up, the market value of fixed-rate bonds generally goes down. With BTP Più, you can effectively "sell" the bond without taking a loss - and reinvest the amount at the new, higher rates.

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