Monte dei Paschi

On Monday investors were turning away from Italian bank debt after the Five Star Movement and the League reached a coalition agreement. But some believe the market will shortly rally.

Italian bank debt was in the firing line this week, after investors became fearful of the country’s political situation for the first time since the election in March.

Following an €8.1bn state bail-out, Banca Monte dei Paschi di Siena still has its work cut out in putting ticks in the boxes of its 2021 restructuring plan.

The coupon for Banca Monte dei Paschi di Siena’s €750m comeback tier two deal was compared with a whole host of other subordinated transactions this week — with varying opinions on what represented good value.

Banca Monte dei Paschi di Siena’s comeback plans show that there is still a big difference between tier two and additional tier one (AT1) bonds, even after the failure of Banco Popular.

Banca Monte dei Paschi di Siena announced a mandate for a benchmark tier two bond on Thursday, its first since its recapitalisation last year. It is a crucial deal for the bank, but it will have to offer a high coupon to tempt investors back.

Banca Monte dei Paschi di Siena has picked banks to arrange a new tier two transaction — its first bond offering since being recapitalised by the Italian state in July 2017.

Banca Monte dei Paschi di Siena (MPS) resumed trading on the Borsa Italiana this week, with its shares opening more than 35% below the level at which the Italian state recapitalised the bank.

Banca Monte dei Paschi di Siena (MPS) resumed trading on the Borsa Italiana this week, with its shares opening more than 35% below the level at which the Italian state recapitalised the bank.

Italy's Banca Monte dei Paschi di Siena (MPS) has spelt out its plans to return to stability and profitability, after a long running brush with resolution ended with a ‘precautionary recapitalisation’ by the Italian state this week.

Nuovo Transporto Viaggiatori ran a four day roadshow for its first bond this week, as the market welcomed a €4bn deal pipeline.

The European Commission and the Italian government have reached an agreement in principle to grant Monte dei Paschi di Siena (MPS) a “precautionary recapitalisation”, clearing the way for the Italian government to inject public funds into the troubled Italian bank.