Italy

Banco BPM split opinion with a debut additional tier one bond this week, paying up to issue but proving that there’s a chance for the middle tier of Italy to access the market. The bank joined only two other Italians in having sold deals in the asset class — the national champion banks Intesa Sanpaolo and UniCredit, writes David Freitas.

Banco BPM hit the euro market on Thursday with its first additional tier one (AT1), becoming only the third Italian bank to sell a deal in the asset class following national champions Intesa Sanpaolo and UniCredit.

Nexi, the Italian payments firm listing in Milan, is to price its IPO at €9 a share, just off the bottom of its initial price range.

The undersupplied European high yield market saw a strong start on Monday, as banks announced new deals from Ineos and Italmatch.

Investors turned their attention to UBI Banca on Wednesday as it issued its debut green bond, sending a clear message about their demand for the product. Two other European banks are already set to follow in the Italian bank’s footsteps.

UBI Banca on Wednesday showed that green bonds still rank high on the list of preferences for investors, after it sold a €500m five year senior preferred deal with an order book three times as large.

The Milan listing of Nexi was covered on March 29, the same day as books opened, attracting solid interest from buyers that see opportunities in jumping on a potential Italian payments revolution.

Banca Carige has sold one of its outstanding covered bonds back into the market as the ailing Italian lender comes into a crucial period for turning its business around and attracting buyout bids.

Centerbridge Partners has sold a €119.2m chunk of its stake in Banca Farmafactoring, the Italian factoring company that specialises in payments owed by public institutions to the healthcare sector, after the stock has rebounded since October.

A trio sovereigns went to the MTN market over the past week, including Italy, which issued a yen bond for the first time since 2009. The deal, led by Nomura, was also its first issue in a foreign currency since 2010.

Issuance of Italian bank debt in 2019 has nearly caught up with last year’s running total. Banca Popolare di Sondrio this week followed Mediobanca and UniCredit into the market to cap off a big week of supply by the nation’s lenders. The run could yet extend further, with UBI Banca gearing up for a debut green bond.

Italy has issued a yen bond for the first time since 2009. The deal, led by Nomura, is also its first issue in a foreign currency since 2010.