Italy

Commerzbank this week became the latest bank to lose its place on a sovereign’s list of primary dealerships, raising a familiar, weary groan from SSA bankers worried about the future of the model — but the head of a major eurozone sovereign has said that issuers are on the banks’ side.

Italy could soon ban banks from selling subordinated debt to retail investors, heaping pressure on funding costs and potentially eliminating a large portion of the industry’s investor base. Tyler Davies reports.

Obbligazioni Bancarie Garantite supply of anywhere between €10bn and €15bn is expected by analysts in 2016, meaning Italy will be the fourth largest issuance region for euro covered bonds next year. House prices are bottoming out and positive economic growth is likely for the first time in years. Though non-performing loans are unsettlingly high, they should peak in 2016, suggesting that the overall picture is starting to look encouraging.

Loans are the last bastion of European corporate finance activity, as the rest of the market falls to Federal Reserve trepidation. But the right message from the Fed could open the door for small, opportunistic trades.

Corporate borrowers in peripheral Europe have a golden opportunity to borrow thanks to the ECB’s targeted long term refinancing operation (TLTRO) help for banks – stalling the march towards bond and private placement predominance.

Italian oil drilling company Saipem has revealed its bank group following the company's debut loan syndication.

Italian oil refinery company Saras signed a €265m loan on December 10, cutting its margin on the refinanced facility by about 150bp.

Italy could move to ban banks’ sale of subordinated debt to retail investors, after bondholders suffered losses during the recent rescue of four failed lenders.

UniCredit has appointed a new head of funding as part of an internal reorganisation.

Since the 2008 financial crisis, for a number of years subdued activity in IPOs was believed to be the norm on Italian exchanges. Yet since 2014, political and economic trends are changing the script — prompting a boom in Italian IPO activity, according to Stefania Godoli, global head of equity capital markets at UniCredit.

Intesa Sanpaolo issued a €1.25bn 10 year covered bond on Wednesday, a transaction that did not initially seem to be an obvious trade, but which in the end proved very successful.

Italian oil drilling company Saipem has completed a €4.7bn debt refinancing, with 21 banks participating in its first syndicated loan.