Italy sets 1.60% minimum rate for new BTP Italia Sì bond, subscriptions start June 15

Rate and mechanism

The Italian Ministry of Economy and Finance has set the minimum guaranteed annual rate at 1.60% for the first BTP Italia Sì, a five-year bond indexed to national inflation. The bond pays semiannual coupons calculated by adding the semiannual inflation rate (measured by the FOI index excluding tobacco) to the fixed-rate component. Even in deflation, investors receive the guaranteed minimum. At maturity, an additional loyalty bonus of 0.6% of principal is paid to those who bought during the subscription period and held the bond to term.

Subscription details

The offer runs from Monday, June 15 to Friday, June 19, closing at 13:00 unless early closure is applied. It is reserved exclusively for individual retail investors and similar entities; all valid orders will be fully satisfied without a cap. Minimum investment is €1,000, and no subscription fees apply during the placement, though standard account charges may exist. Purchases can be made through banks, post offices, or online home-banking with trading functionality, using ISIN code IT0005713539. The bond will trade on the MOT platform via dealers Intesa Sanpaolo and UniCredit, with co-dealers Banca Monte dei Paschi di Siena and Banco BPM.

Tax treatment and benefits

Like other Italian government bonds, BTP Italia Sì enjoys a reduced tax rate of 12.5% on returns (compared with 26% on many other financial products) and is exempt from inheritance tax. Up to €50,000 of the investment is excluded from the ISEE indicator of economic status.

Inflation outlook

Market consensus sees inflation in Italy at 2.9% in 2026, declining to 2.0% in 2027 and 1.7% in 2028, according to Bloomberg data cited by La Stampa. These forecasts suggest the bond's floating component will be highest in the first two years.

Timeline of issuance

Key dates for the offering are set out below.