UniCredit

FMS Wertmanagement is set to dip into the market for the third time this summer, as it seeks to meet an increased funding target for the year.

The European high yield bond market will enter the second half of the year in extraordinary shape, with average coupons at all-time lows and a surge of issuance. Can it get any better? Bankers and investors think not.

Two further Schuldschein deals at least doubled in size this week after Lonza's bumper earlier deal, as the market eclipsed its issuance level for the whole of 2016.

UniCredit’s turnaround plan, which featured a €13bn rights issue and a €17bn NPL sale, seemed well on track on Thursday, as the bank smashed profit expectations for the second quarter with €945m, sending the shares soaring more than 7%. The bank itself prefers to cite a €1.3bn profit figure, stripping out currency translation effects from the sale of its Polish bank Pekao.

Lima Corporate, the Italian maker of orthopaedic implants, kept the euro high yield new issue market in motion with a floating rate bond deal, which, unusually, will be used to refinance the loans that funded its buyout by EQT from Ardian.

Another one of Turkey’s smaller banks, Şekerbank, has signed a €77.5m loan with margins in line with its peers.

Italian maker of orthopaedic implants, Limacorporate, cancelled its bond roadshow in continental Europe on Wednesday, as investor demand from its London meetings accelerated the pricing of a deal to refinance a loan with floating rate notes.

Limacorporate, the Italian maker of orthopaedic implants, is set to keep the euro high yield new issue market in motion with a floating rate bond deal, which unusually will be used to repay the loans that funded its buyout by EQT from Ardian.

Italian electricity network operator Terna brought its first new issue of 2017 on Wednesday and benefitted from strong demand for triple-B rated bonds. The €1bn 10 year deal had an orderbook of €1.6bn and printed with a new issue premium of 8bp-10bp.

For months investors have been complaining about how far pricing moves from initial price thoughts to guidance and again in final pricing in the corporate bond market. On Wednesday, Vodafone responded with a new approach to marketing. The response, however, was not what those involved expected, writes Nigel Owen.

Italian electricity network operator, Terna, brought its first new issue of 2017 on Wednesday, and benefitted from the current strong demand for triple-B rated bonds. The €1bn 10-year deal had an orderbook of €1.6bn and printed with a new issue premium of 10bp.

Vodafone was the star issuer of last summer, printing jumbo deals which served to kick-start the sterling corporate bond market, which is still going strong. On Wednesday however, they opted for more conservative volumes, printing before the summer shutdown begins. The UK telecoms company also adopted a novel approach to pricing.