Italy

Dedalus Holding, the Italian clinical health software company controlled by private equity firm Ardian, is set to list on the Third Market of the Vienna Börse a €72m floating rate note to refinance its debt.

Europe’s bank recovery and resolution directive (BRRD) could face an important first test this month if Banca Monte dei Paschi di Siena fails to complete its rescue plan. But market participants should not completely write off the new framework, even if the bail-in process does not pan out how they had hoped.

Conditions are far from ideal for the launch of Banca Monte dei Paschi’s €5bn equity capital raising, but the subscription period began this morning, with the original bank syndicate but no underwriting commitment.

UniCredit’s recent privately placed additional tier one outperformed the FIG secondary market on Monday, as analysts eyed a positive year for the asset class in 2017.

Banca Monte dei Paschi di Siena has re-opened its debt-for-equity swap and launched a share sale of up to €5bn, as it forces a final push to avoid a bail-in.

Financial credits and stocks were focal points for derivatives traders this week, with a big rally in banks aided by perceptions of a more hawkish stance on interest rate hikes by the US Federal Reserve. But although volatility has largely abated from credit and equity markets with the passing of the Fed meeting, traders warned that Banca Monte dei Paschi di Siena and the credit index options expiry next week could still bring upsets before the end of the year.

UniCredit privately bagged an extra €500m of additional tier one capital this week, ahead of an ambitious plan to bulk up its common equity and clean up its balance sheet.

While UniCredit’s CEO has rallied his troops round a simple vision that should be easy to execute, the success of the corporate and investment bank will come down to greater collaboration across countries and divisions, writes David Rothnie.

With the Christmas holidays fast approaching, equity capital markets are demonstrating that the first quarter of 2017 is likely to be busy, with two significant rights issues announced in the past few days.

UniCredit's €13bn rights issue, which won rousing applause from investors on Tuesday when the share price rose 16% on its announcement, will be one of the centrepieces of what is likely to be a busier year for financial institutions ECM in 2017.

UniCredit will not be one of the Basel IV ‘outliers’ that will have to substantially increase its capital levels when the new rules come in, according to chief executive Jean-Pierre Mustier, speaking at the launch of the bank’s new strategic plan on Tuesday morning.

UniCredit announced this evening a set of capital requirements given it by the European Central Bank. Tomorrow it will hold a capital markets day in London at which Jean-Pierre Mustier, who took over as its CEO in July, will announce his strategy, including towards the bank’s capital position.