BIRS
AVVISO n.12530 | 24 Giugno 2016 | MOT - EuroMOT |
Mittente del comunicato : BORSA ITALIANA
Societa' oggetto dell'Avviso
: BIRS
Oggetto : 'EuroMOT' - Inizio negoziazioni 'BIRS'
Testo del comunicato
Si veda allegato.
Disposizioni della Borsa
Società emittente: BIRS
Titolo: "Obbligazioni Banca Mondiale Tasso Misto Giugno 2026 in USD" (Codice ISIN XS1410230806)
Rating Emittente: BIRS
Società di Rating Long Term Data Report Moody's Aaa
Standard & Poor's AAA
Oggetto: INIZIO DELLE NEGOZIAZIONI IN BORSA
Data inizio negoziazioni: 28/06/2016
Mercato di negoziazione: Borsa - Mercato telematico delle obbligazioni (MOT),
segmento EuroMOT, 'classe euro-obbligazioni, ABS, titoli di emittenti esteri e altri titoli di debito'
Clearing: CC&G
Sistemi di regolamento: Euroclear e Clearstream
Calendario di regolamento: Il calendario della valuta USD tenuto altresì conto dei
giorni di chiusura dei sistemi di liquidazione interessati
Termini di liquidazione: Il secondo giorno successivo alla data di stipulazione dei
contratti di compravendita
EMS: 25.000
Disposizioni normative: Provvedimento n. LOL-002978 del 27/05/2016 di Xxxxx
Italiana
CARATTERISTICHE SALIENTI DEI TITOLI OGGETTO DI QUOTAZIONE
"Obbligazioni Banca Mondiale Tasso Misto Giugno 2026 in USD"
Modalità di negoziazione: corso secco
N. obbligazioni in circolazione: 60.000
Valore nominale unitario: 2.000 USD Valore nominale complessivo
delle obbligazioni in circolazione: 120.000.000 USD
Interessi: le obbligazioni fruttano interessi annui lordi, pagabili in via posticipata in conformità a quanto specificato nei Final Terms del prestito.
Tasso della cedola in corso: 2,35% Modalità di calcolo dei ratei: 30/360
Godimento: 28/06/2016
Scadenza: 28/06/2026 (rimborso alla pari in un'unica soluzione alla scadenza)
Tagli: unico da nominali 2.000 USD
Codice ISIN: XS1410230806
Codice Instrument Id: 797709
Descrizione: WORLD BANK MC GN26 USD Importo minimo di negoziazione: 2.000 USD
DISPOSIZIONI DELLA BORSA ITALIANA
Dal giorno 28/06/2016 gli strumenti finanziari "Obbligazioni Banca Mondiale Tasso Misto Giugno 2026 in USD" verranno iscritti nel Listino Ufficiale, comparto obbligazionario (MOT).
Allegati:
- Provvedimento n. LOL-002978 del 27/05/2016 di Borsa Italiana
- Final Terms del prestito.
Ammissione alle negoziazioni nel MOT dei seguenti strumenti finanziari:
"Obbligazioni Banca Mondiale Tasso Misto Giugno 2026 in USD"(XS1410230806)
Provvedimento n. LOL-002978
Borsa Italiana S.p.A., in persona del xxxx. Xxxxxx Xxxxxxx e della dott.ssa Xxxxx Xxxxxxx, muniti dei necessari poteri, su domanda di BNP Paribas e verificata la sussistenza dei requisiti previsti dal Regolamento1,
DISPONE
ai sensi dell’art. 2.1.2, comma 7 lett. b, del Regolamento e delle relative Istruzioni2:
- l’ammissione alla negoziazione nel Mercato telematico delle obbligazioni (MOT), "segmento EuroMOT", "classe euro-obbligazioni, ABS, titoli di emittenti esteri e altri titoli di debito" degli strumenti finanziari sopra indicati emessi da BIRS;
Il quantitativo minimo di negoziazione dei predetti strumenti finanziari è stabilito in nominali USD 2.000. Le obbligazioni saranno liquidate attraverso Euroclear e Clearstream Banking Lussemburgo.
Il presente provvedimento è comunicato all’operatore e alla Consob, nonché diffuso mediante Avviso.
Milano, 27 maggio 2016
Borsa Italiana S.p.A.
Xxxxxx Xxxxxxx Xxxxx Xxxxxxx
2 Le Istruzioni al Regolamento dei mercati organizzati e gestiti da Borsa Italiana S.p.A. attualmente in vigore e pubblicate sul sito
FINAL TERMS dated June 23, 2016
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
(the “Issuer”)
Issue of USD 120,000,000 Fixed Rate to Floating Rate Notes with Minimum and Maximum Interest Rate due June 28, 2026 (the “Notes”)
(Obbligazioni Banca Mondiale Tasso Misto Giugno 2026 in USD) under the Issuer’s Global Debt Issuance Facility
The Prospectus dated May 28, 2008 referred to below (as completed by these Final Terms) has been prepared on the basis that, except as provided in sub-paragraph (ii) below, any person making or intending to make an offer of the Notes may only do so in:
(i) circumstances in which no obligation arises for the Issuer, the Dealer or the Co-Dealer to publish a prospectus or to distribute the Prospectus or any amendment or supplement thereto issued in connection with the offering of any of the Notes or any other offering material, or in any jurisdiction where there are no requirements for such purpose to be complied with; or
(ii) the Public Offer Jurisdiction mentioned in the Terms and Conditions of the Public Offer set out below, provided such person is one of the persons mentioned in the Terms and Conditions of the Public Offer set out below (the “Authorised Offerors”) and that such offer is made during the Offer Period specified for such purposes therein.
Neither the Issuer, the Dealer nor the Co-Dealer has authorised, nor do they authorise, the making of any offer of Notes in any other circumstances.
Terms used herein shall be deemed to be defined as such for the purposes of the terms and conditions (the “Conditions”) set forth in the Issuer’s Global Debt Issuance Facility Prospectus dated May 28, 2008 (the “Prospectus”).
THIS DOCUMENT CONSTITUTES THE FINAL TERMS OF THE NOTES DESCRIBED HEREIN AND MUST BE READ IN CONJUNCTION WITH SUCH PROSPECTUS.
NONE OF THE PUBLIC OFFER IN ITALY, THE PROSPECTUS AND THIS DOCUMENT OR ANY OTHER DOCUMENTS OR MATERIALS RELATING TO THE PUBLIC OFFER IN ITALY HAVE BEEN OR WILL BE SUBMITTED TO THE CLEARANCE PROCEDURES OF THE COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA (“CONSOB”) PURSUANT TO APPLICABLE ITALIAN LAWS AND REGULATIONS. THE PUBLIC OFFER IS BEING CARRIED OUT IN THE REPUBLIC OF ITALY AS AN EXEMPTED OFFER PURSUANT TO ARTICLE 100, PARAGRAPH 1(D) OF ITALIAN LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998 AS AMENDED; THEREFORE THE PROSPECTUS DOES NOT CONSTITUTE A PROSPECTUS WITHIN THE MEANING OF DIRECTIVE 2003/71/EC AS AMENDED AND IMPLEMENTED IN ITALY.
POTENTIAL INVESTORS SHOULD MAKE THEIR OWN ASSESSMENT OF THE INVESTMENT AND MAY INVEST IN THE NOTES DURING THE OFFER PERIOD THROUGH AUTHORISED PERSONS AND IN COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS OR WITH REQUIREMENTS IMPOSED BY CONSOB, OR ANY OTHER ITALIAN AUTHORITY. EACH AUTHORISED OFFEROR MUST COMPLY WITH THE APPLICABLE LAWS AND REGULATIONS CONCERNING INFORMATION DUTIES VIS-À-VIS ITS CLIENTS IN CONNECTION WITH THE NOTES AND THE PUBLIC OFFER IN ITALY.
ONLY THE ENGLISH VERSION OF THE FINAL TERMS AND PROSPECTUS IS BINDING AND ANY ITALIAN TRANSLATION THEREOF IS NON-BINDING. IN CASE OF ANY CONTRADICTION BETWEEN THE TWO VERSIONS, THE ENGLISH VERSION WILL PREVAIL.
SUMMARY OF THE NOTES
1. Issuer: International Bank for Reconstruction and Development (“IBRD”)
2. (i) Series Number: 4581
(ii) Tranche Number: 1
3. Specified Currency or Currencies (Condition 1(d)):
4. Aggregate Nominal Amount:
United States Dollars (“USD”)
(i) Series: USD 120,000,000
(ii) Tranche: USD 120,000,000
5. (i) Issue Price: 100 per cent. of the Specified Denomination for each Note
(ii) Net Proceeds: USD 120,000,000
6. (i) Specified Denominations
(Condition 1(b)):
(ii) Calculation Amount (Condition 5(j)):
USD 2,000
USD 2,000
7. Issue Date: June 28, 2016
8. Maturity Date (Condition 6(a)): June 28, 2026
9. Interest Basis (Condition 5): Fixed Rate and Floating Rate
(further particulars specified in 16 and 17 below)
10. Redemption/Payment Basis (Condition 6):
11. Change of Interest or Redemption/Payment Basis:
Redemption at par
Fixed Rate from and including the Issue Date to but excluding June 28, 2017 (the “Fixed Rate Period”).
Floating Rate from and including June 28, 2017 to but excluding the Maturity Date (the “Floating Rate Period”).
12. Call/Put Options (Condition 6): Not Applicable
13. Status of the Notes (Condition 3): Unsecured and unsubordinated
14. Listing: Application will be made by the Dealer for the Notes to be admitted to listing and to trading on the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organised and managed by Borsa Italiana S.p.A.
15. Method of distribution: Non-syndicated
PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE
16. Fixed Rate Note Provisions (Condition 5(a)):
Applicable during the Fixed Rate Period
(i) Rate of Interest: 2.35 per cent. per annum payable annually in arrear
(ii) Interest Payment Date(s): June 28, 2017, not subject to adjustment in accordance
with a Business Day Convention
(iii) Interest Period Date: The Interest Payment Date
(iv) Business Day Convention: Not Applicable
(v) Fixed Coupon Amount: USD 47.00 per Calculation Amount
(vi) Day Count Fraction (Condition 5(l)):
30/360
(vii) Other terms relating to the method of calculating interest for Fixed Rate Notes:
Not Applicable
17. Floating Rate Note Provisions (Condition 5(b)):
Applicable during the Floating Rate Period
(i) Interest Period(s): The period from and including June 28, 2017 to but
excluding June 28, 2018 and each successive period from and including the next succeeding Specified Interest Payment Date to but excluding the next succeeding Specified Interest Payment Date
(ii) Specified Interest Payment Date(s):
June 28 in each calendar year from and including June 28, 2018 to and including June 28, 2026, not subject to adjustment in accordance with a Business Day Convention
(iii) Interest Period Date(s): Each Specified Interest Payment Date
(iv) Business Day Not Applicable
Convention:
(v) Business Centre(s): (Condition 5(l)
Not Applicable
(vi) Manner in which the Rate(s) of Interest is/are to be determined:
ISDA Determination
(vii) Party responsible for calculating the Rate(s) of Interest and Interest Amount(s) (if not the Calculation Agent):
Citibank, N.A., London Branch
(viii) ISDA Determination (Condition 5(b)(ii)(B)
- Floating Rate Option: USD-LIBOR-BBA (being, in respect of any Reset Date,
the rate for deposits in USD for a period of the Designated Maturity, which appears on the Reuters Screen LIBOR01 page as of 11.00 a.m., London time, on the day that is two London Business Days preceding such Reset Date).
Where,
“London Business Day” means a day, other than a Saturday or a Sunday, on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in foreign exchange and foreign currency deposits) in London.
“Reuters Screen” means, when used in connection with any designated page, the display page so designated on the Reuters service, or (i) any successor display page, other published source, information vendor or provider that has been officially designated by the sponsor of the original page or source; or (ii) if the sponsor has not officially designated a successor display page, an-other published source, service or provider (as the case may be), the successor display page, other published source, service or provider, if any, designated by the relevant information vendor or provider (if different from the sponsor).
- Designated Maturity: 3 months
- Reset Date: The first day of each Interest Period during the Floating Rate Period
(ix) Margin(s): Not Applicable
(x) Minimum Rate of Interest 0.00 per cent. per annum
(xi) Maximum Rate of Interest 2.35 per cent. per annum
(xii) Day Count Fraction (Condition 5(l))
30/360
(xiii) Fall back provisions, rounding provisions, denominator and any other terms relating to the method of calculating interest on Floating Rate Notes, if different from those set out in the Conditions:
Not Applicable
PROVISIONS RELATING TO REDEMPTION
18. Final Redemption Amount of each Note (Condition 6):
19. Early Redemption Amount (Condition 6(c)):
USD 2,000 per Calculation Amount As set out in the Conditions
GENERAL PROVISIONS APPLICABLE TO THE NOTES
20. Form of Notes (Condition 1(a)): Registered Notes:
Global Registered Certificate available on Issue Date
21. New Global Note: No
22. Financial Centre(s) or other special provisions relating to payment dates (Condition 7(h)):
London and New York
23. Governing law (Condition 14): English
24. Additional Risk Factors: AN INVESTMENT IN THE NOTES IS SUBJECT TO
THE RISKS DESCRIBED BELOW, AS WELL AS THE RISKS DESCRIBED UNDER “RISK FACTORS” IN THE ACCOMPANYING PROSPECTUS. INVESTORS SHOULD CAREFULLY CONSIDER WHETHER THE NOTES ARE SUITED TO THEIR PARTICULAR CIRCUMSTANCES. ACCORDINGLY, PROSPECTIVE INVESTORS SHOULD CONSULT THEIR FINANCIAL AND LEGAL ADVISERS AS TO THE RISKS ENTAILED BY AN INVESTMENT IN THE NOTES AND THE SUITABILITY OF THE NOTES IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES.
Suitability and appropriateness of Investment
An investment in the Notes is only suitable and appropriate for investors who have the requisite knowledge and experience in financial and business matters to evaluate the information contained in the Prospectus and the Final Terms, who have made their
own independent decision to invest in the Notes and as to whether the Notes are suitable and appropriate for them, and who are capable of bearing the economic risk of an investment in the Notes.
The market price of the Notes may be influenced by many factors
The Notes are not designed to be short-term trading instruments. Many factors, most of which are beyond IBRD’s control, will influence the value of the Notes and the price at which the Dealer may be willing to purchase or sell the Notes in the secondary market, including: interest and yield rates in the market, economic, financial, political and regulatory or judicial events that affect the stock markets generally and which may affect the time remaining to the maturity of the Notes and IBRD’s creditworthiness. Some or all of these factors may influence the price that Noteholders will receive if they choose to sell their Notes prior to maturity. The impact of any of the factors set forth above may enhance or offset some or all of any change resulting from another factor or factors.
Floating Rate payable under the Notes may differ from conventional floating rate debt securities
The Notes are Fixed Rate Notes for the first Interest Accrual Period and Floating Rate Notes thereafter until the Maturity Date. Whilst Interest Payment Dates in the Floating Rate Period are on an annual basis, the Relevant Rate for each Interest Accrual Period in the Floating Rate Period will be determined as a rate equal to the relevant ISDA Rate where the Designated Maturity for the relevant Floating Rate Option is a period of 3 months (rather than 1 year). The yield and market value of the Notes may therefore differ from the yield and market value of conventional floating rate debt securities where the floating rate interest is customarily determined by reference to a conventional interest rate index having the same tenor as the frequency of the relevant interest payment dates.
During the Floating Rate Period, the Notes are subject to a Maximum Rate of Interest
The amount of interest payable during the Floating Rate Period is limited by the Maximum Rate of Interest of
2.35 per cent. per annum. Therefore, the applicable Rate of Interest will, in no circumstances, be greater than the Maximum Rate of Interest. As a result, the Noteholders will not benefit in respect of any future performance of the applicable ISDA Rate in excess of the Maximum Rate of Interest during the Floating Rate Period.
25. Other final terms: The first sentence of Condition 7(a)(ii) is hereby replaced
DISTRIBUTION
26. (i) If syndicated, names of
Managers and underwriting commitments:
(ii) Stabilizing Manager(s) (if any):
by the following: “Interest (which for the purpose of this Condition 7(a) shall include all Instalment Amounts other than final Instalment Amounts) on Registered Notes shall be paid to the person shown on the Register at the close of business on the calendar day before the due date for payment thereof (the “Record Date”).”
The Annex hereto is to be read in conjunction with and forms part of the Prospectus and these Final Terms.
Not Applicable
Not Applicable
27. If non-syndicated, name of Dealer: BNP Paribas
28. Total commission and concession: The Issuer will not pay any commission for the offering of the Notes.
For more information on the commissions, see “Offer Price” under “Terms and Conditions of the Public Offer” set forth below.
29. Additional selling restrictions: With respect to offering of the Notes, the first sentence of
“Sales Restrictions” appearing under Plan of Distribution on page 55 of the Prospectus shall be deleted and replaced with the following sentence:
“Save in respect of the Public Offer Jurisdiction, no action has been or will be taken in any jurisdiction by the Issuer, the Dealer or the Co-Dealer that would permit a public offering of any of the Notes, or that would give rise to an obligation for the Issuer, the Dealer or the Co- Dealer to publish a prospectus or to distribute the Prospectus or any amendment or supplement thereto issued in connection with the offering of any of the Notes or any other offering material.”
OPERATIONAL INFORMATION
30. ISIN Code: XS1410230806
31. Common Code: 141023080
32. Delivery: Delivery against payment
33. Registrar and Transfer Agent: Citibank, N.A., London Branch
34. Intended to be held in a manner No which would allow Eurosystem eligibility:
GENERAL INFORMATION
The following documents of IBRD are incorporated by reference in these Final Terms: (i) Global Debt Issuance Facility Prospectus dated May 28, 2008 (the “Prospectus”); (ii) IBRD’s most recent Information Statement dated September 17, 2015, and (iii) IBRD’s Quarterly Financial Statements (unaudited) dated March 31, 2016. These documents have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website as well as on the following website of IBRD: xxxx://xxxxxxxx.xxxxxxxxx.xxx/xxx/xxx/xxxxx.xxxx. Alternatively, to obtain copies of these documents, contact one of the Authorized Offerors (as defined below) or your financial advisor.
During the Offer Period the Notes will be offered to investors in Italy as more fully described below under “TERMS AND CONDITIONS OF THE PUBLIC OFFER”.
CONFLICT OF INTEREST
The Authorised Offerors will receive a commission for the distribution investment service performed in the context of the offer. Furthermore, Banca Nazionale del Lavoro S.p.A., one of the Authorised Offerors, belongs to the same banking group as BNP Paribas. The fact that the Authorised Offerors receive distribution commissions create possible conflicts of interest.
The Dealer has undertaken to subscribe for a minimum amount of Notes equal to USD 10,000,000 under the Terms Agreement – entered into on May 30, 2016 by the Dealer, the Co-Dealer and the Issuer (the “Terms Agreement”) – irrespective of the outcome of the offer of the Notes.
In addition, the Dealer will be IBRD's counterparty in a related swap transaction entered into by IBRD in order to hedge its obligations under the Notes. The existence of such multiple roles and responsibilities for the Dealer creates possible conflicts of interest. All amounts payable under the related swap transaction are expected, as of the Issue Date, to be calculated on the same basis as the amounts payable by IBRD under the Notes. The Noteholder understands that although IBRD will enter into the related swap transaction with the Dealer as swap counterparty in order to hedge its obligations under the Notes, IBRD’s rights and obligations under the related swap transaction will be independent of its rights and obligations under the Notes, and Noteholders will have no interest in the related swap transaction or any payment to which IBRD may be entitled thereunder.
TERMS AND CONDITIONS OF THE PUBLIC OFFER
The Issuer has agreed to allow the use of these Final Terms and the Prospectus by the Dealer and by any entities appointed as distributors by the Dealer (the “Authorised Offerors”) in connection with an offering of the Notes in Italy (the “Public Offer Jurisdiction”) during the Offer Period (as defined below). Banca Akros S.p.A. will act as Co-Dealer in the context of the Offer. The list of the Authorised Offerors is published on the following website: xxx.xxxxxxxxxxxxxxx.xxx on the date of these Final Terms.
The offer of the Notes is conducted in Italy only and is addressed to the public at large.
Qualified Investors, as defined for by article 2 of the Prospectus Directive as implemented by art. 100 of the Italian Financial Services Act and art. 34-ter paragraph 1 lett. b) of CONSOB Xxxxxxxxxx Xx. 00000 of 14 May 1999 as amended from time to time, can only acquire the Notes in the framework of the public offer of the Notes if, and to the extent that, the Total Amount of the Offer has not been exhausted by requests from the public at large.
During the Offer Period (as defined below), the Notes will be distributed without any underwriting commitment by the Authorised Offerors, pursuant to certain distribution agreements between the Dealer and the Authorised Offerors. On the Issue Date, the Notes will be subscribed for by the Dealer acting as principal and then assigned by the Authorised Offerors in the context of the offer of the Notes.
The Dealer has undertaken to subscribe for a minimum amount of Notes equal to USD 10,000,000 under the Terms Agreement irrespective of the outcome of the offer of the Notes, save in the case of withdrawal of the offer and cancellation of the issuance of the Notes as provided for by clause (iii) below. No undertakings have been made by the Authorised Offerors, the Co-Dealer or third parties to guarantee the outcome of the offer of the Notes in connection of any minimum amount of the Notes.
All offers of Notes will be made only in accordance with the selling restrictions set forth in the Prospectus and the provisions of these Final Terms and in compliance with all applicable laws and regulations, provided that no such offer of Notes shall require the Issuer, the Dealer or the Co-Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive (or supplement a prospectus pursuant to Article 16 of the Prospectus Directive) or to take any other action in any jurisdiction other than as listed above.
(i) Offer Period: From and including May 30, 2016 at 9.00 am CET time to and including June 20, 2016, at 4.00 pm CET time, subject to any early closing or extension of the Offer Period as described under (iii) below.
The Notes will be distributed through door-to-door selling pursuant to Article 30 of the Italian Legislative Decree No. 58 of 24 February 1998, as amended from time to time (the “Italian Financial Services Act”) from and including May 30, 2016 at 9.00 am CET time to and including June 13, 2016, at 4.00 pm CET time, subject to any early closing or extension of the Offer Period as described under paragraphs (iii) and
(v) below.
The Notes will be distributed through long distance selling techniques (tecniche di comunicazione a distanza) pursuant to article 32 of the Italian Financial Services Act from and including May 30, 2016 at 9.00 am CET time to and including June 6, 2016, at 4.00 pm CET time, subject to any early closing or extension of the Offer Period as described under paragraphs (iii) and (v) below.
(ii) Offer Price: The Issue Price, equal to 100 per cent. of the Specified Denomination of each Note.
The Offer Price includes, per Specified Denomination, an upfront commission for the distribution and promotion of the Notes paid by the Dealer to the Authorised Offerors, equal to a maximum amount of
2.50 per cent. (including VAT, if any) of the Specified Denomination of the Notes distributed by each Authorised Offeror.
(iii) Early closing, extension, withdrawal and cancellation:
The Offer Period may be closed early as determined by the Dealer or the Issuer in their sole discretion. The Issuer will inform the public of the early closure of the Offer Period by means of a notice to be published on the website xxx.xxxxxxxxxxxxxxx.xxx. The early closure of the Offer Period will be effective from the day following the day of publication of the relevant notice and will also relate to distributions made
(iv) Conditions to which the offer is subject:
(v) Description of the application process:
through door-to-door selling and/or through distance marketing techniques.
The Issuer reserves the right, in agreement with the Dealer, to withdraw the offer of the Notes and cancel the issuance of the Notes at any time before the Issue Date in the case that any extraordinary changes in the economic and political situation or in the capital, currency and exchange rates markets, either at a national or international level will have occurred. The Issuer will inform the public of the withdrawal of the offer of the Notes and the cancelation of the issuance of the Notes by means of a notice to be published on the website xxx.xxxxxxxxxxxxxxx.xxx.
For the avoidance of doubt, if any contract has been entered into on behalf of a potential investor and the Issuer exercises such a right, each such potential investor will not be entitled to receive the relevant Notes.
The Issuer reserves the right, in agreement with the Dealer, to extend the Offer Period. The Issuer will inform the public of the extension of the Offer Period by means of a notice to be published on the website xxx.xxxxxxxxxxxxxxx.xxx.
The offer of the Notes is conditional on their issue.
The final amount of the Notes issued will be determined by the Issuer in light of prevailing market conditions and in its sole and absolute discretion.
A prospective Noteholder will purchase the Notes in accordance with the arrangements in place between the relevant Authorised Offeror and its customers, relating to the purchase of securities generally. Noteholders (other than the Dealer and the Co-Dealer) will not enter into any contractual arrangements directly with the Issuer in connection with the offer or purchase of the Notes.
During the Offer Period, investors may apply for the purchase of the Notes during normal Italian banking hours at the offices (filiali) of any Authorised Offerors by filling in, duly executing (also by appropriate attorneys) and delivering a specific acceptance form. Acceptance forms are available at each Authorised Offeror’s office.
Authorised Offerors intending to distribute Notes through door-to-door selling (fuori sede) pursuant to article 30 of the Italian Financial Services Act will collect the acceptance forms – other than directly at their branches and offices – through financial promoters (promotori finanziari) pursuant to Article
31 of the Italian Financial Services Act.
Pursuant to Article 30, paragraph 6, of the Italian Financial Services Act, the validity and enforceability of contracts entered into through door-to-door selling is suspended for a period of 7 (seven) days beginning on the date of purchase by the relevant investor. Within such period investors may notify the relevant Authorised Offeror of their withdrawal without payment of any charge or commission.
The Notes will be also offered through long distance selling techniques (tecniche di comunicazione a distanza) pursuant to article 32 of the Italian Financial Services Act (i.e., through the trading-online platform of the Authorised Offerors or recorded telephone orders). In this case, investors may purchase the Notes via the internet or the telephone, after being identified by the Authorised Offeror, by using their personal password/identification codes.
Pursuant to article 67-duodecies of the Italian Legislative Decree No. 206/2005 as amended (the so- called “Codice del Consumo”), the validity and enforceability of the contracts entered into though long distance selling techniques (tecniche di comunicazione a distanza) is suspended for a period of 14 (fourteen) days beginning on the date of purchase by the relevant investor. Within such period investors may notify the relevant Authorised Offeror of their withdrawal without any charge or commission.
Applicants having no client relationship with the Authorised Offeror with whom the acceptance form is filed may be required to open a current account or to make a temporary non-interest bearing deposit of an amount equal to the counter-value of the Notes requested, calculated on the basis of the Issue Price of the Notes. In the event that the Notes are not allotted or only partially allotted, the total amount paid as a temporary deposit, or any difference with the counter- value of the Notes allotted, will be repaid to the applicant without charge by the Issue Date.
Each Authorised Offeror is responsible for the notification of any withdrawal right applicable in relation to the offer of the Notes to potential investors.
By purchasing the Notes, the holders of the Notes are deemed to have knowledge of all the terms and conditions of the Notes and to accept the said terms and conditions of the Notes.
The Notes may be purchased in a Minimum Lot or an integral number of Notes greater than the Minimum
(vi) Details of the minimum and/or maximum amount of application (whether in number of Notes or aggregate amount to invest):
Lot.
Multiple applications may be filled in and delivered by the same applicants with the same or different Authorised Offeror, without prejudice to the circumstance that for the purposes of the allotment each applicant will be considered individually, independently of the number of acceptance forms delivered.
Companies providing investment portfolio management services through nominee registration, ("società fiduciarie autorizzate alla gestione patrimoniale di portafogli d'investimento mediante intestazione fiduciaria") as per article 60, paragraph 4, of Legislative Decree No. 415 of 23 July 1996, in order to participate in the offer solely on behalf of their clients, must complete the relevant acceptance form for each client by entering the client’s fiscal code in the appropriate box.
Investors may also submit their applications to participate in the offer of the Notes through parties authorised to perform individual investment portfolio management services pursuant to Italian Financial Services Act, provided that these parties sign the appropriate form in the name and on behalf of the applicant, and through intermediaries authorised to receive and transmit orders, pursuant to the Italian Financial Services Act, at the conditions provided for by CONSOB regulations from time to time applicable.
Applications received by the Authorised Offerors prior to the start of the Offer Period or after the closing date of the Offer Period, will be considered as not having been received and will be void.
Without prejudice to the provisions of clause (iii) above regarding the withdrawal of the offer and cancellation of the issuance of the Notes, the Notes will be issued for a minimum amount of USD 10,000,000 based on the underwriting commitment of the Dealer under the Terms Agreement –– up to a maximum amount of USD 500,000,000 based on the decision of the Issuer and on the demand from the investors (the “Total Amount of the Offer”).
The Issuer reserves the right, in agreement with the Dealer, to increase the Total Amount of the Offer during the Offer Period. The Issuer will inform the public of the size increase by means of a notice to be published on the website xxx.xxxxxxxxxxxxxxx.xxx.
Minimum purchase amount per investor: USD 2,000 (the “Minimum Lot”).
Maximum purchase amount of the Notes to be applied
(vii) Method and time limits for paying up the Notes and for delivery of the Notes:
(viii) Xxxxxx and date in which results of the offer are to be made public:
(ix) Procedure for exercise of any right of pre-emption, negotiability of subscription rights and treatment of subscription rights not exercised:
(x) Details of any tranche(s) reserved for certain countries:
(xi) Process for notification to applicants of the amount allotted and indication whether dealing may begin before notification is made:
(xii) Amount of any expenses and taxes specifically charged to the Noteholders:
for by each investor is the Total Amount of the Offer.
The Notes will be sold by the Issuer to the Dealer on a delivery against payment basis on the Issue Date. Prospective Noteholders will be notified by the relevant Authorised Offeror of the settlement arrangements in respect of Notes.
The results of the offer of the Notes will be published as soon as possible on the website xxx.xxxxxxxxxxxxxxx.xxx.
Not Applicable
Not Applicable
There are no pre-identified allotment criteria. The Authorised Offerors will adopt allotment criteria that ensure equal treatment of prospective investors.
All of the Notes requested through the Authorised Offerors during the Offer Period will be assigned up to the Total Amount of the Offer.
In the event that during the Offer Period the requests exceed the Total Amount of the Offer the Issuer will at it discretion, either, (i) proceed to increase the size of the offer or, (ii) early terminate the Offer Period and suspend the acceptance of further requests.
Qualified Investors as defined for by article 2 of the Prospectus Directive as implemented by art. 100 of the Italian Financial Services Act and art. 34-ter paragraph 1 lett. b) of CONSOB Xxxxxxxxxx Xx. 00000 of 14 May 1999 as amended from time to time, can only acquire the Notes in the framework of the public offer of the Notes if, and to the extent that, the Total Amount of the Offer has not been exhausted by requests from the public at large.
Each Authorised Offeror will notify applicants of amounts allotted immediately after the publication of the notice mentioned in paragraph (viii) above and, in any event, before the Issue Date.
No dealings in the Notes may take place prior to the Issue Date.
(A.) Selling and distribution commissions: see above paragraph (ii).
(xiii) Name(s) and address(es), to the extent known to the Issuer, of the Authorised Offerors in the various countries where the offer takes place:
(B.) Administrative and other costs relating to the holding of the Notes (service fees, custodians fees, brokerage fees, financial services etc.): the prospective purchaser is invited to check those costs with its financial intermediary.
Banca Akros S.p.A. will act as co-dealer in the context of the Offer (the “Co-Dealer”).
The list of the Authorised Offerors is published on the following website: xxx.xxxxxxxxxxxxxxx.xxx on the date of these Final Terms.
LISTING APPLICATION
Application will be made by the Dealer for the Notes to be admitted to listing and to trading on the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organised and managed by Borsa Italiana S.p.A. The Issuer is not a sponsor of, nor is it responsible for, the admission to listing and trading of the Notes on the MOT Market and no assurance can be given that any such application will be successful.
RESPONSIBILITY
IBRD accepts responsibility for the information contained in these Final Terms. Signed on behalf of IBRD:
By: ........................................................
Name:
Title: Duly authorized
ANNEX
This Annex is to be read in conjunction with and forms part of the Prospectus and the Final Terms. Although there is no legal obligation whatsoever, under any applicable law, for the Issuer, the Dealer or the Co-Dealer to provide you with such information as mentioned herein, this Annex is meant to answer some practical questions that you might have regarding the Notes in general terms only. It does not contain all the information which may be important to you. You should read the terms and conditions of the Notes included in the Prospectus and the Final Terms together with the more detailed information contained in the remainder of the Prospectus. You should carefully consider, amongst other things, the risks set out in the Prospectus and in the Final Terms. In addition, we urge you to consult with your investment, legal, accounting, tax and other advisors with respect to any investment in the Notes. The information contained in this section is subject in its entirety to the terms and conditions of the Notes included in the Prospectus and the Final Terms
What are the Notes?
The Notes are debt securities issued by the International Bank for Reconstruction and Development (the "Issuer"). At maturity, the Notes entitle the Noteholder to receive from the Issuer the Final Redemption Amount of USD 2,000 per Calculation Amount plus the Interest Amount with respect to the Maturity Date. In addition, the Noteholder will receive during the term of the Notes Interest Amounts calculated for the first year at a fixed rate and thereafter at a floating rate equal to USD LIBOR 3 months, subject to a maximum rate of interest and a minimum rate of interest. All payments on the Notes are subject to the Issuer’s credit risk (insolvency or payment default of the Issuer) and potential foreign exchange risk if the Noteholder converts the payout (coupons and nominal amount) it receives in USD into Euro or any other currency.
Where does my money go?
The net proceeds from the sale of the Notes will be used by IBRD in its general operations in order to provide financing, risk management products, other financial services, access to experts and a pool of knowledge in development-related disciplines to the governments of IBRD’s borrowing members so that they can achieve equitable and sustainable economic growth in their national economies. Projects supported by XXXX undergo a rigorous review and approval process aimed at safeguarding equitable and sustainable economic growth, including early screening to identify environmental and social impacts and designing concrete mitigation actions. IBRD integrates five cross cutting themes into its activities helping its borrowing members create sustainable development solutions: climate change; gender; jobs; public-private partnerships; and fragility, conflict and violence.
Will I receive income?
Yes, during the term of the Notes, the Noteholder will receive Interest Amounts calculated for the first year at a fixed rate and thereafter at a floating rate equal to USD LIBOR 3 months, subject to a maximum rate of interest and a minimum rate of interest.
Can I redeem early?
No. There is no provision in the Notes for a Noteholder's early redemption right. However, application will be made for the Notes to be admitted to listing and to trading on the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organised and managed by Borsa Italiana
S.p.A. and BNP Paribas has informed the Issuer that, except in the case of exceptional market circumstances, it will, on a best efforts basis, endeavour to make a secondary market during open business hours, with a bid-ask spread no larger than 1%. Also, a brokerage fee may be applied by any financial intermediary involved. The Noteholders are invited to check with its financial intermediary if brokerage fees apply.
Can the Notes be redeemed early by the Issuer?
No. There is no provision in the Notes for the Issuer's early redemption right.
What are the fees?
The investors will purchase the Notes at an Offer Price of 100%. This price includes, per Specified Denomination of USD 2,000, an upfront commission for the distribution and promotion of the Notes paid upfront by the Dealer to the Authorised Offerors (i.e., the distributors), equal to a maximum amount of 2.50% (including VAT, if any) of the USD 2,000 Specified Denomination of the Notes distributed by each Authorised Offeror.
How will the fees impact my investment?
The fees retained by the Authorised Offerors will not affect the amounts due in accordance with the terms and conditions of the Notes.
What is the Issuer’s credit rating?
The Issuer’s long-term senior debt rating is, as at the date hereof, Aaa (Moody's Investor Services) and AAA (S&P). Investors should note, however, that the ratings may not reflect the potential impact of all risks related to structure, market and other factors that may affect the value of the Notes. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time.
What are some of the risks in owning the Notes?
Investing in the Notes involves a number of risks. We have described the most significant risks relating to the Notes in the Prospectus (under the heading “Risk Factors” at page 14 and following) and the Final Terms (under Term 25 “Additional Risk Factors” under the heading “General provisions applicable to the Notes”).
Is there Currency Risk?
Since the Notes are issued in USD, you incur a foreign exchange risk if you decide to convert the coupon payments and the principal amount into another currency (e.g. euro). Indeed, such returns when so converted will be affected, not only by the amount of the coupon and principal, but also by the evolution of the USD against the relevant currency. If, upon maturity, the USD has depreciated against such currency, the final return in such currency will be lower. Conversely, an appreciation of the USD will have the opposite impact.
Are the Notes a suitable and appropriate investment for me?
The Notes can only be offered to the investors by the Authorised Offerors if they are appropriate and - if necessary, in light of the investment services provided by the Authorised Offeror to the relevant investor - suitable for the investors.
Should an investor decide to invest in the Notes, without getting any advice from its bank, its bank should in any case warn him/her if the Notes are not appropriate or, if necessary according to applicable laws and regulations, suitable for him/her.
Will I always be able to sell my Notes in a secondary market prior to the Maturity Date?
There is no assurance as to the development or liquidity of any trading market for the Notes. Therefore, investors may not be able to sell their Notes easily or at prices that would provide them with a yield comparable to similar investments that have a developed secondary market. However, application will be made by the Dealer for the Notes to be admitted to listing and to trading on the Mercato Telematico delle Obbligazioni (MOT), EuroMOT segment, organised and managed by Borsa Italiana S.p.A. and BNP Paribas has informed the Issuer that, except in the case of exceptional market circumstances, it will, on a best efforts basis, endeavour to make a secondary market during open business hours, with a bid-ask spread no larger than 1%. Also, a brokerage fee may be applied by any financial intermediary involved. The Noteholders are invited to check with its financial intermediary if brokerage fees apply.
Are there any taxes payable by me in relation to the Notes?
The Schedule contains a summary with regard to certain tax aspects which are of significance in connection with the Notes for certain jurisdictions. This summary does not purport to exhaustively describe all possible tax aspects and does not deal with specific situations which may be of relevance for individual potential investors. It is recommended that potential purchasers of the Notes consult with their legal and tax advisors as to the tax consequences of the purchase, holding or sale of the Notes under the tax laws of the country of which they are resident for tax purposes.
Where and in which form are the Notes held?
The Notes will initially be held by Euroclear Bank N.V./S.A. and Clearstream Banking S.A. (the "Clearing Systems") in the form of a global certificate which will be exchangeable for definitive securities only in the exceptional circumstances described in the Prospectus. For as long as any Notes are held by the Clearing Systems, payments of the coupon and principal will be made through the Clearing Systems. Investors must therefore rely on the Clearing System to distribute all payments attributable to the Notes which are received from the Issuer. Accordingly, investors will be exposed to the credit risk of, and default risk in respect of, the Clearing Systems, as well as the Issuer. Investors should note that neither the Issuer nor the Registrar (Citibank, N.A., London Branch) shall be responsible for the acts or omissions of the Clearing Systems. Furthermore, investors should be aware of the fact that the Clearing Systems may charge fees for the opening and operation of an investment account, transfers of Notes, custody services and on payments of interest, principal and other amounts or delivery of notes. Potential investors are therefore advised to investigate the basis on which any such fees will be charged on the Notes.
SCHEDULE TO THE FINAL TERMS
TAXATION
You should carefully consider the matters set forth under “Tax Matters” in the accompanying Prospectus. This summary supplements the section “Tax Matters” in the accompanying Prospectus and is subject to the limitations and exceptions set forth therein.
The following is only a general description of certain tax considerations relating to the Notes with regard to a limited number of jurisdictions. It does not purport to be a complete analysis of all tax considerations relating to the purchase, beneficial ownership, and disposition of the Notes.
Prospective purchasers of Notes should consult their tax advisers as to the consequences under the tax laws of the country of which they are resident for tax purposes.
This summary is based upon the law as in effect on the date of these Final Terms and is subject to any change in law that may take effect after such date (or even before with retroactive effect).
The Issuer makes no representation or warranty, whether express or implied, as to the completeness or accuracy of this summary.
ITALIAN TAXATION
Income Tax
Under the current legislation, pursuant to the provisions of Legislative Decree No. 239 of 1 April 1996, as amended and restated (Law 239), payments of interest and other proceeds in respect of the Notes:
(i) will be subject to imposta sostitutiva at the rate of 12.5 per cent. in the Republic of Italy levied as final tax if made to beneficial owners who are: (i) individuals resident in the Republic of Italy for tax purposes; (ii) Italian resident non-commercial partnerships; (iii) Italian resident public and private entities, other than companies, not carrying out commercial activities as their exclusive or principal purpose (including the Italian State and public entities); and (iv) Italian resident entities exempt from corporate income tax.
Payments of interest and other proceeds in respect of the Notes will not be included in the general taxable base of the above mentioned individuals, partnerships and entities.
The imposta sostitutiva will be levied by the Italian resident qualified financial intermediaries that will intervene, in any way, in the collection of interest and other proceeds on the Notes or in the transfer of the Notes;
(ii) will be subject to imposta sostitutiva at the rate of 12.5 per cent in the Republic of Italy levied as provisional tax if made to beneficial owners who are: (i) individuals resident in the Republic of Italy for tax purposes; (ii) Italian resident non-commercial partnerships; and (iii) Italian resident public and private entities, other than companies; any of them engaged in an entrepreneurial activity – to the extent permitted by law – to which the Notes are connected;
(iii) will not be subject to the imposta sostitutiva if made to beneficial owners who are: (i) Italian resident corporations, commercial partnerships or permanent establishments in Italy of non- resident corporations to which the Notes are effectively connected; (ii) Italian resident collective investment funds, SICAVs, Italian resident pension funds referred to in Legislative Decree No. 124 of 21 April 1993, as further superseded by Legislative Decree 5 December 2005, No. 252 and Italian resident real estate investment funds established pursuant to article 37 of Legislative Decree No. 58 of February 24, 1998 and article 14-bis of law No. 86 of January 25, 1994; (iii) Italian resident individuals who have entrusted the management of their
financial assets, including the Notes, to an Italian authorised financial intermediary and have opted for the so-called risparmio gestito regime according to Article 7 of Legislative Decree No. 461 of 21 November 1997 - the “Asset Management Option” and (iv), non Italian resident with no permanent establishment in Italy to which the Notes are effectively connected, the exemption applies provided that the non Italian investor promptly file with the authorized financial intermediary an appropriate affidavit (autodichiarazione) stating that the investor is not resident in Italy for tax purposes.
Interest and other proceeds accrued on the Notes held by Italian resident corporations, commercial partnerships, individual entrepreneurs as well as Italian resident public and private entities, other than companies, holding Notes in connection with entrepreneurial activities or permanent establishments in Italy of non-resident corporations to which the Notes are effectively connected, are included in the taxable base for the purposes of: (i) corporate income tax (imposta sul reddito delle società, IRES); or
(ii) individual income tax (imposta sul reddito delle persone fisiche, IRPEF) plus local surtaxes, if applicable; under certain circumstances, such interest is included in the taxable basis of the regional tax on productive activities (imposta regionale sulle attività produttive, IRAP).
If holders of Notes subject to such final tax hold the Notes through an authorised intermediary in Italy having asset management power over such Notes, such holders may opt to pay a final 26 per cent. tax levied by the intermediary on all interest, other payments and gains deriving from such management on an annual basis ("managed savings option"). However, in such case, interest, other payments and gains arising from the Notes will be taxable for a portion equal to 48.08 per cent. only. If holders of Notes subject to such substitute tax on account of income taxes hold Notes through such an assets manager, interest, other payments and gains will be taxed as part of their overall income.
If interest are paid outside of Italy by an entity other than an authorised intermediary in Italy to residents of Italy who would otherwise be subject to the above 12.5 per cent. final tax, holders of Notes must include the payments received in their income tax return and the payments shall be subject to a different substitute tax at a 12.5 per cent. rate or, at the holders' option, to income taxes at the applicable rates to their overall income with a tax credit for taxes paid abroad.
If the Notes are held by an Italian pension fund and are deposited with an authorised intermediary, interest, premium and other income relating to the Notes and accrued during the holding period will not be subject to the substitute tax, but must be included in the result of the relevant portfolio accrued at the end of the tax period for an amount of 62.5 per cent., to be subject to a 20 per cent. substitute tax.
If the Notes are held by an Italian authorised investment fund (organismi di investimento collettivo del risparmio – O.I.C.R.) or a SICAV (società di investimento a capitale variabile) investing in securities and are deposited with an authorised intermediary, interest, premium and other income relating to the Notes and accrued during the holding period will not be subject to the substitute tax.
If the Notes are held by an Italian real estate investment fund (fondi immobiliari) or a SICAF (società di investimento a capitale fisso) investing and are deposited with an authorised intermediary, interest, premium and other income relating to the Notes and accrued during the holding period will not be subject to the substitute tax.
Capital gains
Any capital gain realised upon the sale for consideration or redemption of Notes would be treated for the purpose of corporate income tax and of individual income tax as part of the taxable business income of Noteholders (and, in certain cases, depending on the status of the Noteholders, may also be included in the taxable basis of IRAP), and therefore subject to tax in Italy according to the relevant tax provisions, if derived by Noteholders who are:
(a) Italian resident corporations;
(b) Italian resident commercial partnerships;
(c) permanent establishments in Italy of foreign corporations to which the Notes are effectively connected; or
(d) Italian resident individuals carrying out a commercial activity, as to any capital gains realised within the scope of their commercial activity.
Xxxxx realised on the disposal or redemption of Notes by residents of Italy who are individuals not acting in a business capacity or by non-business partnerships and similar organisations will be subject to a final capital gains tax currently at the rate of 12.5 per cent. The tax applies to all gains and losses realised in the relevant year and losses may be carried forward to the subsequent four years. Said holders of Notes may opt to pay capital gains tax declaring the gains in their annual income tax return or, if the Notes are deposited with an authorised intermediary in Italy, authorising the intermediary to xxxx the said capital gains tax ("administered savings option"). If they have elected the managed savings option, a portion equal to 48.08 per cent. of the gains arising from the Notes will be subject to the tax applicable thereto. Instead, gains realised by residents of Italy who are individuals acting in a business capacity, partnerships, limited partnerships, corporations or permanent establishments of foreign corporations shall be subject to income or corporation taxes as part of the overall business income (and, in certain cases, may also be included in the taxable net value of production for IRAP purposes).
Gains realised by investment funds (organismi di investimento collettivo del risparmio – O.I.C.R.) or SICAVs (società di investimento a capitale variabile) will be included in the result of the portfolio accrued at the end of the tax period. The fund will not be subject to taxation on such results.
Gains realised by Italian real estate investment funds (complying with the definition as amended pursuant to Law Decree No. 78 of 31 may 2010, converted into Law No. 122 of 30 July 2010) or by SICAFs, to which the provisions of Law Decree No. 351 of 25 September 2001, as subsequently amended, apply, are subject neither to capital gains tax nor to any other income tax in the hands of the real estate fund or SICAF.
Xxxxx realised by Italian pension funds will be included in the result of the relevant portfolio accrued at the end of the tax period for an amount of 62.5 per cent., to be subject to a 20 per cent. substitute tax.
Pursuant to Article 23 of Presidential Decree of 22 December 1986, No. 917, any capital gains realised, by non-Italian residents without a permanent establishment in Italy to which the Notes are effectively connected, through the sale for consideration or redemption of Notes are exempt from taxation in Italy to the extent that the Notes are listed on a regulated market in Italy or abroad and in certain cases subject to filing of required documentation, even if the Notes are held in Italy. The exemption applies provided that the non-Italian investor promptly file with the authorized financial intermediary an appropriate affidavit (autodichiarazione) stating that the investor is not resident in Italy for tax purposes.
The Notes are excluded from the tax base of the Italian inheritance tax according to article 12 of Legislative Decree 346/1990 and Article 12, paragraph 13-bis of Legislative Decree 461/1997.
EU DIRECTIVE ON THE TAXATION OF SAVINGS INCOME
On 3 June 2003, the Council of the European Union adopted the EU Directive No. 2003/48/EC regarding the taxation of savings income (the “European Savings Directive”). According to the European Savings Directive, each member State of the European Union (a Member State) is required to provide to the Tax Authorities of other States of the European Union details of the interest payments by a person within its jurisdiction to individuals resident in that other State. However, for a transitional period, Austria may instead apply a withholding system in relation to such payments, deducting tax at rates rising over time to 35%.
In any case, the transitional period is to terminate at the end of the first full tax year following agreement by certain non-EU countries to the exchange of information relating to such payments.
A number of non-EU countries, including Switzerland and certain dependent or associated territories of certain Member States, have agreed to adopt similar measures (either provision of information or transitional withholding) in relation to payments made by a paying agent within its jurisdiction to, or collected by such a paying agent for an individual resident or certain limited types of entity established in a Member State. In addition, the Member States have entered into provision of information or transitional withholding arrangements with certain of those dependent or associated territories in relation to payments made by a paying agent in a Member State to, or collected by such a paying agent for an individual resident or certain limited types of entity established in one of those territories.
The Council of the European Union formally adopted a Council Directive amending the Directive on 24 March 2014 (the Amending Directive). The Amending Directive broadens the scope of the requirements described above and requires Member States to adopt the national legislation necessary to comply with the Amending Directive by 1 January 2016. The changes made under the Amending Directive extend the scope of the Directive to payments made to, or collected for, certain other entities and legal arrangements. They also broaden the definition of "interest payment" to cover income that is equivalent to interest.
However, on 10 November 2015, the Council of the European Union approved the Council Directive 2015/2060/EU (published in the Official Journal of the EU on 18 November 2015) which has repealed the EU Savings Directive with effect from 1st January 2017 in the case of Austria and from 1 January 2016 in the case of all other Member States. The repeal of the Savings Directive is needed in order to prevent overlap between the EU Savings Directive and a new automatic exchange of information regime to be implemented under Council Directive No. 2011/16/EU on Administrative Cooperation in the field of Taxation (as amended by Council Directive No. 2014/107/EU) and to save costs both for tax authorities and economic operators.
Italy has implemented the European Savings Directive through Legislative Decree No. 84 of 18 April 2005 (the Decree No. 84). Under Decree No. 84, subject to a number of important conditions being met, in the case of interest paid starting from 1 July 2005 (including the case of interest accrued on the Certificates at the time of their disposal) to individuals which qualify as beneficial owners of the interest payment and are resident for tax purposes in another Member State or in certain associated territories of Member States, Italian paying agents (i.e., banks, investment firms (società di intermediazione mobiliare – SIM), fiduciary companies, Italian management company (società di gestione del risparmio – SGR) resident for tax purposes in Italy, permanent establishments in Italy of non-resident persons and any other economic operator resident for tax purposes in Italy paying interest for professional or commercial reasons) shall report to the Italian tax authorities details of the relevant payments and personal information on the individual beneficial owner. Such information is transmitted by the Italian Tax Authorities to the competent foreign tax authorities of the State of residence of the beneficial owner. In certain circumstances, the same reporting requirements must be complied with also in respect of interest paid to an entity established in another Member State, other than legal persons (with the exception of certain Finnish and Swedish entities), whose profits are taxed under general arrangements for business taxation and, in certain circumstance, undertakings for collective investments in transferable securities (UCITS).