Italy

A pair of eurozone periphery sovereigns have deals in the pipeline — but could face problems bringing the trades, bankers warned this week.

UniCredit Italy took advantage of constructive conditions and scarce Italian covered bond supply to launch a 10 year on Wednesday. The bank was rewarded with a well oversubscribed order book while paying little new issue premium.

UniCredit Italy took advantage of constructive conditions and scarce Italian covered bond supply to launch a 10 year and got a well oversubscribed order book, paying little new issue premium on Wednesday

UniCredit in Italy has mandated leads for the fourth 10 year covered bond of the week, but unlike the others it will offer a double digit return over mid swaps.

The world’s oldest bank has trodden a 500-year line between the sacred and the profane.

The key to the clean-up and recapitalization of Italy’s Banca Monte dei Paschi di Siena is a €5bn rights issue but even though a strong cast of top tier ECM banks have signed on to run it, the deal still hinges on finding real demand. Aidan Gregory and Owen Sanderson report.

Intesa Sanpaolo beat analysts’ earnings expectations for the second quarter and came out shining in last week’s stress tests. Though its pile of non-performing loans is still growing, the bank has escaped the asset quality and capital adequacy fears that dog Italy’s other large banks.

Despite recording strong year on year increases to net income in the second quarter, UniCredit's corporate and investment bank attracted little attention on Wednesday. Instead new chief executive Jean Pierre Mustier spent time taking questions on the group's plans to raise capital, stress tests and non-performing loans.

Shares in Banca Monte dei Paschi di Siena, have fallen by as much as 17% since the bank unveiled plans for its rescue on Friday, which include a €5bn rights issue.

BayernLB successfully issued a $300m Pfandbrief at a tighter spread than it could have achieved in euros. It follows a privately placed sterling Obbligazioni Bancarie Garantite (OBG) issued by Banca Popolare dell'Emilia Romagna (BPER).

Banca Monte dei Paschi di Siena will try to raise €5bn of capital by completing its fifth rights issue in eight years by the end of 2016.

Monte dei Paschi di Siena’s last minute non-performing loan fix could bolster spreads on outstanding debt, at the expense of shareholders, while avoiding any bail-in of bondholders.