Italy

Italy’s UBI Banca will today (Thursday) price a Eu500m five year issue on the back of modest demand, while DnB Nor Boligkreditt yesterday sold its first dollar benchmark covered bond and Canadian Imperial Bank of Commerce priced its first covered bond in the Kangaroo market.

Skandinaviska Enskilda Banken will today (Wednesday) price a Eu1bn seven year issue at the tight end of revised guidance after meeting with strong demand for the first Swedish euro benchmark since June. Meanwhile, Italy’s UBI Banca is gauging interest for a new issue, Canadian Imperial Bank of Commerce has opened books for an Australian dollar debut, and a mandate for a debut off an innovative programme has been added to the deal pipeline.

Spain’s Unicaja will today (Tuesday) price a Eu750m five year cédulas hipotecarias issue, more than a marketed Eu500m minimum deal size, although syndicate bankers away from the leads said the deal had at times appeared to struggle. Issuance was otherwise restricted to a tap and floating rate note, although there are rumours of deals in the pipeline and CIBC has mandated for an Australian dollar debut.

Italy’s UniCredit took advantage of a stabilisation of the euro-zone sovereign market to yesterday (Monday) launch a Eu1bn seven year covered bond issue before next week heading into an extended black-out period ahead of a merger of its Italian banking subsidiaries, the issuer told The Cover.

Italy’s UniCredit launched a Eu1bn maximum seven year issue this (Monday) morning that syndicate bankers away from the deal complimented for being “bang-on”, while Spain’s UniCaja is testing investor interest for a Eu500m minimum five year cédulas.

EuroWeek and The Cover, in association with Banca IMI and UniCredit, brought together leading issuers and investors from Italy to discuss the importance of obbligazioni bancarie garantite to them, as well as pricing and regulatory issues facing the market.

Banca Monte dei Paschi di Siena reached a Eu1.25bn size with its second obbligazioni bancarie garantite benchmark on Tuesday despite coming on a hectic day. The issuer spoke to The Cover about the deal’s timing, maturity and pricing.

GCE Covered Bonds announced a mandate for a new covered bond this (Wednesday) morning, but otherwise the primary market was quiet after yesterday’s five euro benchmarks and one dollar issue.

Five issuers piled into the euro covered bond market in one of its busiest ever sessions this (Tuesday) morning to take advantage of supportive conditions. Supply included the first deals in a maturity longer than 10 years since June.

At least three issuers are understood to be preparing to launch sizeable new covered bonds this week despite no deals being live on the first morning of a working week for the first time since the benchmark market reopened in August. Meanwhile, Dexia has announced spreads on three new benchmarks it is offering as part of an exchange.

More peripheral covered bonds are being mulled for launch in the coming week, but any further issuance by lower ranked credits will have to contend with a weakening of demand, as hinted at by sub-Eu1bn deals for Italy’s Banco Popolare and Spain’s Bankinter yesterday (Thursday). Meanwhile, Compagnie de Financement Foncier has completed a third foray into the US 144A market.

Banco Popolare and Bankinter are bookbuilding for new issues today (Tuesday) amid signs that investor appetite for second tier issuers from peripheral countries could be flagging after a busy two weeks, particularly from Spain.