The recent issuance of the BTP Più bond has garnered significant attention as it concluded with impressive figures, totaling approximately 14.9 billion euros. On February 21, 2025, the Ministry of Economy and Finance (MEF) officially announced the outcome of the offering, which aimed at retail investors. With these numbers, the BTP Più positioned itself as one of the major investment opportunities available to the public.
Launched on February 17, 2025, the BTP Più bond employs compelling features aimed at attracting small investors. Notably, the bond offers two tiers of interest rates, providing attractive returns over its eight-year duration. For the initial four years, investors will receive a gross annual yield of 2.85%, which has been slightly revised upward from earlier projections (initially set at 2.80%). For the latter four years, the bond guarantees a gross return of 3.70%, up from 3.60% as per previous announcements made by the MEF.
This upward revision reflects the current economic climate and aims to align the bond's attractiveness with investor expectations. According to the MEF, “I tassi cedolari definitivi del BTP Più, in conseguenza delle condizioni di mercato, sono rivisti al rialzo rispetto ai livelli annunciati lo scorso 14 febbraio.” Such adjustments signify the government's responsiveness to market conditions, affirming the BTP Più's commitment to offering competitive yields.
Investors also benefit from the unique feature of early redemption. The BTP Più bond allows holders who keep their investments until the end of the fourth year the option to redeem their entire investment or part of it, without incurring penalties. This feature could be particularly appealing for retail investors who prefer flexibility in their investment horizons.
During the five days of the offering, the bond experienced strong demand, starting with subscriptions reaching 5.6 billion euros on day one. Follow-up days saw figures of 3.7 billion euros, 2.8 billion euros, and finally 1.7 billion euros on the last day, accumulating to the noteworthy total. The last day of the offering alone accounted for roughly 1.1 billion euros, showing sustained investor interest throughout the entire period.
Despite not surpassing the record 18.3 billion euros raised during the February 2024 issuance of the BTP Valore, the BTP Più nonetheless outperformed previous issuances, including the 11.2 billion euros raised from the last BTP Italia. This speaks volumes about the current appetite for Italian government bonds among the retail sector and suggests a positive outlook for future offerings.
Additional favorable elements associated with the BTP Più bond include its fiscal advantages. The bond is subject to favorable taxation regulations, with returns taxed at 12.5% and exempt from inheritance taxes. The 2024 budget law also stipulates these investments (up to 50,000 euros) will be excluded from the ISEE calculations—making them particularly attractive for smaller investors.
The structure of the BTP Più allows for quarterly payments, layering additional benefits for investors. This payment structure, combined with its relatively long duration and favorable rates, positions the BTP Più as a wise investment choice for cautious investors seeking stability amid economic uncertainties.
The conclusion of this bond issuance phase marks not only another achievement for the Italian government but also reinforces the healthy demand for state securities among the public. It demonstrates the capacity of the bond market to adapt to investors’ needs, fostering confidence among retail investors eager to participate. Given the current interest rate environment, the BTP Più presents itself as not merely another government offering, but rather as a strategic choice for individuals seeking long-term investment opportunities with tangible benefits.
With the BTP Più, Italy appears committed to maintaining the momentum within its bond markets, indicating promising prospects as it prepares for future financial offerings aimed at both the retail segment and broader investor communities.