Italy

A period of instability brought on by mounting concerns about peripheral sovereigns meant that Banco Popolare had to wait more than three weeks to launch a deal after embarking on a roadshow, but the issuer was rewarded with an oversubscribed order book and strong support from real money accounts. Meanwhile Caisse de Refinancement de l’Habitat has launched two taps.

Banco Popolare has priced a Eu1bn seven year issue that is the first Italian benchmark covered bond of the year and the first from a southern European jurisdiction since concerns about peripheral sovereigns’ finances flared up.

Crédit Mutuel-CIC priced the third benchmark covered bond of the week yesterday (Thursday) afternoon, but with the European Union’s statement in support of Greece having failed to calm nerves, the two day burst of activity could prove to have marked the eye of the storm, rather than its end.

Crédit Mutuel-CIC this (Thursday) morning launched its second benchmark in just over a month, marketing a seven year transaction that follows a five year deal sold on 7 January.

Benchmark supply is expected to be thin on the ground this week, even though some institutions have concluded preparations for covered bond issuance. But while blackouts and an unpredictable sovereign market might stymie euro supply, bankers have not ruled out shorter dated issuance from core jurisdictions.

Aareal Bank was first into the covered bond market this (Monday) morning, opening books on a Eu500m five year mortgage Pfandbrief. Meanwhile, Groupe Caisse d’Epargne is building a shadow order book for its first benchmark since September 2008 and a handful of other issuers have announced mandates.

A Eu1bn 10 year obbligazioni bancarie garantite issue for UBI Banca yesterday (Thursday) showed that despite the approaching year-end there is still demand from investors looking for yield at the long end of the curve, said a syndicate official at one of the leads.

UBI Banca launched a Eu1bn 10 year mortgage-backed covered bond this (Thursday) morning, tackling the complications of launching a new issue close to year-end to prevent this week from becoming the first since the week of 22 June without any benchmark supply (including taps).

UBI Banca is understood to be holding investor meetings from today (Monday) to Wednesday, although a syndicate official familiar with the meetings said that they were not directly deal driven.

Banca Carige on Wednesday positioned itself in the benchmark covered bond market for the first time, with a Eu1bn seven year issue. As a mid-sized regional bank that is primarily funded by deposits, it had to overcome weak name recognition, but the issuer told The Cover that it is satisfied with the reception its benchmark received in the end.

Banca Carige will price a Eu1bn seven year debut benchmark covered bond this (Wednesday) afternoon at a level that met with a strong response from investors even though some were left with disappointed expectations.

Banca Carige is likely to set the maturity of its debut benchmark covered bond at seven years, according to market participants. Meanwhile, a Spanish name is said to be looking closely at the market with the possibility of an imminent deal and Dexia’s Luxembourg registered arm is aiming to settle some unfinished business.