otrv

Treasury Bonds with Variable Yield (OTRV)

Description


Treasury Bonds with Variable Yield (OTRV) are book-entry securities, governed by Portuguese law, representing medium and long-term loans from the Portuguese Republic.

 

The Treasury Bonds with Variable Yield (OTRV) are created with the purpose of boosting the public debt market, through the diversification of public debt instruments and the distribution channels available to investors, as well as broadening the investor base of the Portuguese Republic.

 

The issuance conditions of Treasury Bonds with Variable Yield (OTRV) were established in accordance with the provisions of Resolution of the Council of Ministers No. 86/2015, of September 24, published in Series 1 of the Diário da República No. 193, of October 2, and Instruction No. 1-A/2015, published in Series 2 of the Diário da República No. 206, of October 21.

 

Main common characteristics of the OTRV:

  • the nominal value of each OTRV corresponds to 1,000.00 euros (one thousand euros);
  • the maximum subscription limit per investor is 1,000,000.00 euros (one million euros), corresponding to 1,000 (one thousand) bonds;
  • the applicable nominal interest rate is variable;
  • the OTRV are issued for terms of up to 10 years, with their repayment made on the maturity date corresponding to the nominal value and in a single installment.


The information considered relevant by the IGCP in each issuance of Treasury Bonds with Variable Yield (OTRV) is published in Series 2 of the Diário da República.

 

Placement of OTRV: it is carried out in the market through one or more credit institutions specifically mandated by the IGCP for this purpose, allowing potential investors to subscribe to OTRV with any authorized financial intermediary in Portugal, during the respective placement period defined by the IGCP.

 

If the demand exceeds the total nominal value of the OTRV subject to an offer, a pro-rata distribution will take place according to the successive applications, as long as there are remaining OTRV to be assigned, based on the allocation criteria defined by the IGCP, together with the credit institutions involved in the placement, which are included in the documentation related to each operation and are timely disclosed to the market.

 

The Treasury Bonds with Variable Yield (OTRV) include Collective Action Clauses (CAC). The CAC are obligatorily included in the debt issuances of Eurozone States since January 2013, with the purpose of ensuring that holders of OTRV can, if necessary, deliberate on matters considered relevant, namely changes to the applicable conditions, with the decisions approved being binding for all holders of OTRV.

 

Expenses related to the Treasury Bonds with Variable Yield (OTRV)

In addition to the subscription price, there may be other expenses associated with collecting subscription orders, which must be communicated by the financial intermediary to the investor when the subscription order is transmitted (and must be included in the financial intermediary's pricing schedule). Additionally, there may be custody fees and commissions on the payment of interest and redemption, which should be communicated by the financial intermediary to the investor.

At any time prior to subscription, any potential investor may request a financial intermediary to simulate the costs of the operation they intend to carry out, obtaining the respective internal rate of return, and consult the pricing schedule of financial intermediaries on the CMVM website.


To obtain more detailed information about the issuances of Treasury Bonds with Variable Yield (OTRV), the documents of each series:

 

Series

OTRV JULY 2025 

 

  • Memorandum (10-07-2018 - increase of the global nominal value)