Italy

European sovereign tests inflation-linked market as EU brings a new green bond

Infrequent issuer's less liquid curve makes judging fair value tricky

Exor is underwriting the entire capital increase

Governments may feel they save money with retail issues, but an illiquidity premium looms

After a series of wide moves from IPTs, investors were pleased a deal began close to landing

Belfius lands flat as Fineco prices with about 12.5bp of premium

◆ Senior arrives a week after €5bn book for covered deal ◆ Latest orders land at €1.4bn ◆ Rival bankers say smaller book down to smart execution, not saturation

◆ Deal execution is ‘exemplary of the current market’ ◆ Demand drops by around €2.4bn from peak to landing, yet clears 10bp inside fair value ◆ Issuer reduces cost with bullet and counts SP bonds towards MREL

SLB-only issuer defends against wider investor complaints about small penalties for missing targets

Constant inflows help Coca-Cola HBC, Ren and Enel snap spreads in during bookbuilding

◆ Deal ends with the largest book for a BPER senior trade GlobalCapital has tracked in recent years ◆ Pricing is flat if not inside FV ◆ Green deal sends encouraging signals to the periphery's other less frequent issuers

Italian gas group wins big book for debut green tranche