MILAN: Italy has set the minimum coupon rates on a new 16-year BTP Futura bond, to be applied at four-year intervals, at 0.75%, 1.20%, 1.65% and 2% respectively, the Treasury said on Friday.

Rome issued the first BTP Futura last July. The note is for retail investors only and the issuance proceeds will be used entirely to fund measures to help the economy recover from the coronavirus pandemic and the vaccination campaign.

The bond due April 2037 will be put on sale April 19-23.

The coupon rate for the first four years will remain unchanged, while those of the following four-year periods might be revised upwards at the end of the issuance, based on market conditions.

Unlike previous issuances, the BTP Futura's "loyalty premium", linked to Italy's nominal gross domestic product growth, will be paid in two tranches, at the end of the first eight years and at maturity.