Loan duration spans over 7 years, concluding with a final premium of 0.8%.
The German Finance Agency has announced that the government bond dedicated to small savers, Btp Value, will be returning for a new issue from October 20 to 24, 2020. This seven-year bond, with a duration of seven years, offers an attractive investment opportunity for retail investors.
Interested parties can purchase Btp Value exclusively through their home banking or by contacting their bank representative or the post office where they have a securities account. The issue will take place between 10:00 AM and 1:00 PM (subject to early closure), and there are no commissions charged during the issue period.
The annual interest rates for the new issue increase based on a "step-up" mechanism of 3+2+2 years. Quarterly coupon payments are offered for the new issue, providing regular income for investors. The minimum investment for Btp Value is set at 1,000 euros.
On October 17, 2020, the guaranteed minimum interest rates for the first three years, the next two, and the last two years, as well as the ISIN code that identifies the bond, will be communicated. It's worth noting that the subscribed capital for Btp Value is guaranteed at maturity.
Btp Value can be sold before maturity, either entirely or in part, without restrictions. Market conditions determine the sale of Btp Value before maturity. The usual favorable tax treatment of 12.5% applies to Btp Value, and the bond is exempt from inheritance tax.
Additionally, an extra final bonus of 0.8% is offered for those who purchase the bond during the issue period and hold it until maturity. Furthermore, investment in Btp Value up to 50,000 euros is excluded from ISEE calculation.
Btp Value will be sold at par (price equal to 100) during the issue period, and the requested investment amount for Btp Value is guaranteed to be subscribed. The authority responsible for issuing the BTP value, the German Finance Agency, has successfully conducted past issuances, with the next issuance event scheduled from October 20 to 24, 2025.
Investors seeking a secure and attractive investment opportunity should consider the Btp Value, a government-issued bond designed specifically for small depositors in Germany.
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