UniCredit

JAB Holding, the acquisitive consumer products holding company of the Reimann family, launched eight and 20 year euro benchmark bonds on Monday, hoping to adjust its debt pile with the proceeds.

Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

The listing of Italian luxury yacht maker Sanlorenzo is due to be priced at €16, the bottom of the initial range, despite a tough market backdrop for IPOs.

Chemical company Lanxess has signed a €1bn sustainability-linked loan, as lenders expect next year to see huge growth in other German companies using the format.

Germany’s Volkswagen has signed a €10bn revolving credit facility, with the automobile company taking advantage of a significant oversubscription to double the size of its existing revolver.

Shares in Italian football club Juventus FC have started to trade ex-rights this week ahead of its €300m rights issue, which is expected to price before Christmas to give the club more firepower in the January transfer window.

European banks are waiting for relief from central bankers, politicians and regulators. But UniCredit is positioning itself to offset several of the biggest problems facing the sector, giving it greater room to forge its own destiny.

UniCredit’s plan until 2023, revealed in London on Tuesday, involves rewarding shareholders with larger distributions on the back of a growth in revenue. The payment of these distributions will be given greater protection, thanks to the creation of a new intermediate holding company to lessen the bank’s regulatory capital burden. Meanwhile, chief executive Jean Pierre Mustier was clear that large M&A does not form part of the bank’s plans.

Italgas, the Italian gas distributor, issued a €500m 12 year bond on Monday, although syndicate bankers said they expected deal flow to diminish to a trickle over the week.

Mediobanca was looking to sell its second six year senior bond of 2019 on Monday, revealing its preference for deals in the belly of the maturity curve.

The Bank of Italy will require Banca Monte dei Paschi di Siena to maintain higher capital buffers from next year, after finding that it has become more complex and interconnected within the financial system.

Italy printed an €800m 20 year inflation linked private placement on Thursday, satisfying demand from a single investor.