Yesterday the Dipartmento del Tesoro...........>

BTPS: Yesterday the Dipartmento del Tesoro released updated guidance on Italian

issuance this year with an aim of not significantly altering the "terms of debt

structure and composition" Highlights below:

- The auction calendar remains unchanged but auction sizes will be increased.

This will be across maturities and sectors of the market with "more weight to

the sectors with greater liquidity on the secondary market and deeper demand."

- Increase in the share of supplementary placements available to primary

dealers. Previous limits were 30% for a first tranche and 15% (for 10+year up to

20% if communicated via press release). The limits for reopenings can be waived.

- More syndications for new benchmarks, for all maturities not just those

normally issued by syndications. Highlighted in the press release is that

nominals and linkers under 10 years may now be syndicated.

- New placements to primary dealers in weeks where no auctions are scheduled of

off-the-run securities.

- At least one new BTP Italia aimed at retail investors.

- Multiple issuances of plain vanilla nominal securities for retail investors.