A new BTP enters the portfolio of Italian government bonds. The Ministry of Economy and Finance (MEF) has placed 8 billion euros of the new BTP Green with maturity on 30 October 2038, setting the annual coupon rate at 4.40 percent. The security was issued at 99.591, therefore slightly below par, with a gross annual yield at issue of 4.492 percent. What does all this mean?
What is the new BTP Green 2038 and how it works
The BTP Green is a government bond that works like a normal multi-year treasury bond: the saver lends money to the state, receives periodic interest and upon maturity receives reimbursement of the nominal capital. The difference is in the destination of the resources collected, used to finance public expenditure with environmental purposes.
The new bond placed on 22 September 2026 has a duration of 12 years and expires on 30 October 2038. The Treasury has set an annual coupon of 4.40% and a gross yield on issue of 4.492%, with a placement price of 99.591.
The two percentages do not mean the same thing. 4.40% is the annual interest paid on the nominal value of the security. The yield of 4.492% also considers the issue price lower than 100: those who purchase under the conditions of the placement pay slightly less than what they will receive at maturity.
The coupons are semi-annual and the capital is repaid at the nominal value in 2038. Let’s see how.
What Green BTPs finance: 13.6 billion also for Superbonus
The proceeds from Green BTPs finance investments and other state budget measures aimed at the ecological transition: renewable energy, energy efficiency, sustainable transport, protection of the environment and biodiversity, combating pollution and environmental research.
But where did the money raised actually go? The Ministry of Economy itself reports approximately 13.6 billion euros of Green BTPs issued in 2025, intended for interventions carried out in the four-year period 2022-2025. Among these also the Superbonus, which alone absorbed just over 6 billion.
How much does the BTP Green 2038 yield with 10 thousand euros: simulation
Let’s do a purely demonstrative simulation on an investment of 10,000 euros, assuming the purchase at the conditions of issue and holding the security until maturity.
With an annual coupon of 4.40%, the saver receives 440 euros gross per year. The preferential taxation of 12.5%, foreseen for Italian government bonds, applies to this interest. The result is simple: they make 385 euros net per year, divided into two payments of 192.50 euros for each full semester.
How much do you earn in total? Considering twelve full years of interest, the total is 4,620 euros net. Added to these are 35.79 euros net deriving from the difference between the issue price and the 100 reimbursement.
The total is therefore 4,655.79 euros net, in addition to any first short coupon, to be counted separately based on the definitive calendar of the security. Upon maturity, the nominal 10,000 euros are also returned.
Ordinary coupons are expected on April 30th and October 30th of each year, according to the cycle used by the Treasury for other Green BTPs expiring in October. However, the calendar and amount of the first coupon of the new 2038 must be verified on the relevant technical sheet. The simulation does not include bank commissions, stamp duty on the securities dossier and any other costs.
How to buy the new Btp Green 2038
Unlike the BTP Valore, the new BTP Green was not placed directly with small savers. The issue took place through a syndicate of banks made up of Barclays, BNP Paribas, Deutsche Bank, Intesa Sanpaolo, JP Morgan and Societe Generale.
To purchase it, you must therefore wait for trading on the secondary market, through your bank or a trading platform authorized to buy and sell government bonds.
The price of 99.591 is the one set at issue and once trading has started, the value of the BTP may rise or fall depending on market conditions.
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This means that the 4.40% coupon remains unchanged, while the actual return on the investment depends on the price paid. Anyone who purchases above par, i.e. over 100, will receive a refund at maturity that is less than the sum spent for the nominal capital purchased. Those who buy below par will instead have an additional profit at the time of reimbursement.
The nominal capital is repaid at maturity on 30 October 2038. Anyone who decides to sell earlier can instead realize a capital gain or loss, depending on the market price of the security at that time.
Btp Green 2038, requests for over 110 billion: who bought the bonds
The new Italian BTP Green has collected requests for over 110 billion euros, compared to an issue of 8 billion. This was communicated by the Ministry of Economy, which released the final results of the placement of the bond expiring in October 2038. Over 330 investors from more than 35 countries participated. Approximately 80% of the issue was subscribed by ESG investors, who integrate environmental, social and governance criteria into their financial choices.
The demand came mainly from abroad: 74.7% of the securities placed went to non-Italian investors. The United Kingdom represents the first geographical area, with 29.7%, followed by Italy with 25.3%. Looking at the type of buyers, 37.3% of the securities were subscribed by fund managers, 29.7% by banks and 20.8% by central banks and government institutions.