Italy

The European high yield market this week saw towering deals like SoftBank’s $4.5bn and Synlab’s €1.1bn, but investors also found a place in their portfolios for smaller notes.

Beni Stabili, the Italian property company largely owned by Foncière des Régions, priced on Thursday a €200m convertible bond at a 0.875% coupon and 32.5% conversion premium.

Two periphery banks this week made clear that their market is back in business. Like the wider FIG market, the periphery had been closed since early June. There is room, albeit temporarily, for more, writes Virginia Furness.

The primary market for peripheral European covered bonds leapt back to life this week after a 12 week hiatus, with investors queuing up to buy a series of deals that emerged in quick succession.

Fiat Chrysler Automobiles put to rest rumours about the bank group working on its much-hyped spin-off of Ferrari, the Italian luxury sports car manufacturer, on Thursday, as it announced that two European houses and one American one were to lead the transaction.

StormHarbour said it has hired Federico Buccellati, the former head of advisory for southern Europe at HSBC, as a senior advisor.

Banca Popolare di Vicenza, the 150 year old Italian bank, has picked three banks to lead its initial public offering in Milan.

Italian gaming company Snai on Tuesday issued a €110m bond to support its acquisition of a domestic competitor, Cogemat.

Two peripheral bank trades on Tuesday offered further proof that the FIG market is once again in rude health. Ibercaja Banco opened books on its long awaited tier two and Banco Popolare opted for a senior five year.

Banca Popolare dell'Emilia Romagna’s (BPER) and Banco Popular Español’s (BPE) five year bonds enjoyed equally good receptions, even though BPER’s Italian covered bond came at half the spread and with a much lower rating than BPE’s Spanish deal.

Italian national airline Alitalia capitalised on an issuance window this week to print its first bond under a new ownership structure, which took effect early this year. The company sold the bond as a private placement, and comes as bankers suggest more corporate borrowers could issue in the format after weeks of sluggish activity in public markets.

A €600m ($663m) two year financing for China National Chemical Corp (ChemChina) has been opened into syndication. Two French lenders are leading the deal and they have invited a select group of banks to participate.