Italy

Holders of Banca Monte dei Paschi di Siena’s €300m 10 year tier two have already been burned in the secondary market, with the price of the bonds having plummeted since their initial sale on July 16.

Banca Carige has plans to convert its tier two bonds into equity and raise €900m of fresh capital, as it looks to turn itself around and avoid the need for a bail-out from the Italian state.

Renewables pair bring sunshine to project finance market - National Bank of Oman launches loan syndication - Cubico lights up project finance desks - Drax completes bridge refinancing with PPs, ESG debt - Italy’s IMA raises €50m via Euro PP market

Renewables companies Sonnedix and Solarpack have signed separate project finance facilities totaling €260.6m, with the funding going towards solar photovoltaic plants in Italy and Spain.

Banca Popolare di Sondrio tapped the FIG euro market this week, looking to bolster its subordinated capital buffer. The issuer had to pay an expensive coupon of 6.25% on the notes, but with this issuance it fulfils its minimum requirements for own funds and eligible liabilities (MREL).

Banca Popolare di Sondrio is set to become the latest Italian bank to access the market for subordinated debt this month, tapping into a thirst for yield among European investors.

The last part of Banca Monte dei Paschi di Siena’s capital raising plan could also end up being the hardest, after the Italian lender was constrained this week to raising €300m of tier two at an eye-watering coupon rate of 10.5%. Tyler Davies reports.

Borrowers across the eurozone periphery will have spied a chance to raise capital after deals from Greece and Italy’s Banco di Desio this week.

Rating: Caa1/—/B

Robust demand for this week’s covered bond from Banco di Desio e della Brianza has boosted hopes of further supply from the eurozone periphery. But, with further European Central Bank stimulus on the way, a supply ‘onslaught’ is unlikely.

Banca Monte dei Paschi di Siena, the ailing Italian bank, was offering a double digit yield in return for investment in a new €300m tier two on Tuesday, as it looked to chip away at its €700m shortfall in the asset class.

Banco di Desio e della Brianza took advantage of a recent 100bp rally in Italian government bonds to issue an Obbligazioni Bancarie Garantite (OBG) on Tuesday with a negative new issue premium.