UniCredit

Banco Santander Totta this week returned to the covered bond market after a four year absence, choosing a three year maturity and a spread that ensured it was an easy choice for risk-averse and yield-hungry investors alike. The €1bn deal is likely to replace central bank funding.

Syngenta, the Swiss agricultural chemicals group, enjoyed keen demand for a rare bond issue on Monday, thanks to its strong ratings and scarcity as a borrower.

Italy’s UniCredit is about to become the first bank to sell an additional tier one deal since KBC Group’s transaction pushed market boundaries two weeks ago. UniCredit's deal also follows a period of repricing during which investors have pushed back on yields.

Creatrade Holding, the German fashion retailer owned by Silverfleet Capital, has successfully refinanced €105m of loans.

Europe's financial institutions debt market was a little softer in synthetic indices as this week began, but that has not kept issuers from pricing and planning deals.

Three financials are looking to retest the market’s appetite for additional tier one deals, after a two week hiatus for the asset class that has seen spreads on recent AT1 bonds widen, raising the question of whether the next round of trades will enjoy the stellar primary market successes of their peers.

Syngenta, the Swiss agricultural chemicals group, enjoyed the keen demand for a rare bond issue on Monday, thanks to its strong ratings and scarcity as a borrower.

The first Italian additional tier one capital issue could be very close, as bank capital specialists prepare for the new product's next phase of growth after a two week hiatus.

Investors should expect a rush of aggressively priced deals from SSA issuers in the coming weeks, according to syndicate bankers. Borrowers emboldened by a strong new issue market are considered likely to throw caution to the wind and turn their eye to securing very attractive levels in lieu of large sizes.

Rating: Aaa/AA+/AAA

Deutsche Pfandbriefbank (Pbb) returned to the covered bond market on Tuesday to issue a €500m five year benchmark. The book attracted over €1.1bn of demand, a stronger performance than the disappointing eight year benchmark that it priced in January.

The European Investment Bank and UniCredit have agreed to provide €700m of medium and long term loans to small and medium-sized companies in Italy.