Italy

FCA Bank, the Italian car finance bank, joined US company Sysco in issuing a euro corporate bond on Tuesday, despite turbulent market conditions — and like Sysco, achieved a good result.

Two new borrowers launched deals in the European high yield market on Monday, PVH and Salini Impregilo. Both are double-B rated, like most of last week’s deals.

Fitch may assign a rating uplift to Italian SME covered bonds, or Titolo Obbligazionari Collateralizzati. The upbeat rating assessment follows a survey conducted by analysts at Société Générale which suggests more than 40% of covered bond investors would consider buying such deals.

Banco Popolare’s €1bn rights issue, for which the pricing was announced on Thursday, is a “done deal” according to a banker away from it — so much so that Bank of America Merrill Lynch and Mediobanca have kept the underwriting to themselves.

In this round-up, RMB deposits shrink further in Singapore and Hong Kong, the Stock Connect scheme southbound channel continues to dominate trading, China prepares for direct trading of RMB and Korean won, and Italian enterprises are found to be warming up to the RMB. Plus, a recap of GlobalRMB’s coverage this week.

Veneto Banca’s IPO bookbuild will begin on June 8, but hopes of it achieving its flotation in Milan are dim. “At the bottom of the price range, there are cheaper Italian banks,” said one banker on the deal, encapsulating the problem.

European Council president Donald Tusk this week told European Union leaders their “utopian” illusions were tearing Europe apart. They may end up doing the same to its banking sector.

Banca Popolare di Milano and Banco Sabadell issued covered bonds which, despite their negligible new issue concessions, met with exceptionally strong demand.

Assicurazioni Generali

Italian construction firm CMC di Ravenna has launched a €150m credit facility in a levfin market where loans have the upper hand.

Assicurazioni Generali launched its second 32 non-call 12 year tier two in just over six months on Tuesday, adding to a surge in issuance from European insurers.

UniCredit took advantage of a strong rally in subordinated paper to raise €750m of new tier two funding on Thursday, despite being on the lookout for a new chief executive and a new capital strategy.