Intesa Sanpaolo

After months of preparation, one of this year's most highly anticipated European IPOs got going on Monday, when Pirelli, the 145-year old Italian tyre maker, announced its intention to float on Borsa Italiana.

Intesa is expecting to close its €5.2bn syndicated loan deal to finance Qatar Investment Authority and Glencore’s acquisition of a 19.5% stake in Rosneft by mid-September after much delay.

European banks are expected to call the first generation of Basel III compliant additional tier one (AT1) instruments, as a prolonged rally in the asset class has made refinancing conditions very attractive for issuers.

Banco Santander has launched its €7.07bn fully underwritten rights issue to support its acquisition of the failed Banco Popular Español, saying it expects to make a return on investment on the deal of 13% to 14% by 2020.

UBI Banca, the Italian bank, completed its €400m rights issue on Friday June 30, when the tiny rump of 6.7m rights, not subscribed for during the subscription period, were all sold on the stockmarket in the first few minutes they were offered.

Different countries treat their banks differently, but rarely has that been clearer than last week. The week closed with Italy agreeing to hand Intesa a fat cheque, a free option and state blessing to consolidate its hold on the banking system. The UK, though, started criminal prosecution of its own ‘national champion’, with the Serious Fraud Office unveiling its fraud allegations against Barclays.

Well funded European financial institutions could take a step back from the euro market in the build up to the summer period, leaving it to firms from outside the region to keep FIG investors entertained in the coming months.

A trio of euro borrowers launched trades and a fourth picked banks on Tuesday in a market buoyed by a perceived renewal of European political unity following welcome results in elections in France and Italy at the weekend.

Nuovo Transporto Viaggiatori ran a four day roadshow for its first bond this week, as the market welcomed a €4bn deal pipeline.

Intesa Sanpaolo has finally launched into general syndication a €5.2bn loan that it solely underwrote for the acquisition of a 19.5% stake in Rosneft by the Qatar Investment Authority and Glencore, after months of delay and reports that it might not happen.

Intesa Sanpaolo was unable to tighten pricing for its barely subscribed €1bn 10 year Obbligazioni Bancarie Garantite on Wednesday as mounting political risk in Italy caused a distinct change in sentiment.

The Italian Treasury on Thursday bought back €4.2bn of the November 2017 BTP Italia — more than €1bn above its target amount — as part of a syndicated exchange that swapped the bonds for paper maturing in the 2020s and 2030s.