The new BTP Valore recorded collections of over 16.2 billion euros with 522,214 contracts registered. The seventh issue of the Treasury instrument ended today, Friday 6 March, at 1pm and the success is also due to the upward revision of the guaranteed coupon: the definitive rates are higher than the minimums announced at the end of February, given the “evolution of market conditions” caused by the war in Iran.
How the new BTP Valore works
The new BTP Valore has a duration of six years and maintains the “step-up” architecture, with rates increasing over time with a 2+2+2 scheme. Coupons are paid quarterly. There were no limits or ceilings on the issue and it was possible to subscribe to securities starting from 1,000 euros.
The definitive coupon rates are set at:
- 2.60% for the 1st and 2nd year;
- 3.20% for the 3rd and 4th year;
- 3.80% for the 5th and 6th year
How much you earn by investing 10,000 euros in BTP Value
According to the definitive annual coupon rates set by the Mef and the related translation into real cash flows on your bank account, we can simulate an investment of 10,000 euros in BTP Value. We must take into account the taxation applied, which as for all Government Bonds is subsidized at 12.5%, and the stamp duty of 0.20%.
In the table below we have reconstructed the amount of income and their history in an investor’s current account until the maturity of the BTP Valore, i.e. March 2032.
| Reference Period (Quarters) | Net coupons on the account |
| From the 1st to the 8th trimester (Years 1 and 2) | €51.87 (every three months) |
| From the 9th to the 16th trimester (Years 3 and 4) | €65.00 (every three months) |
| From the 17th to the 23rd quarter (Years 5 and 6) | €78.12 (every three months) |
| 24th quarter (Last coupon + Premium + Capital) | €10,148.13 (single final credit) |
The “loyalty” bonus and how much you earn after 6 years
To those who purchase the security during the placement phase and carry it until the natural maturity of 2032, the Mef recognizes a final extra premium of 0.8% on the invested capital. In our simulation the net premium would amount to 70 euros.
At the end of 6 years, the total net return of the investor who has staked 10,000 euros on the BTP Valore will be 1,620 euros net of interest and premiums only, equal to 17.5% of the initial capital, an average return of approximately 2.91% net per year.