UniCredit

Exor is underwriting the entire capital increase

Sub-sovereign continues to chip away at its €9.6bn annual programme

◆ 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

German issuer is also monitoring issuing conditions in dollars and smaller markets such as Kangaroo

Issuer was one of a handful of German SSAs to benefit from a quiet primary market this week

WIBank set to add to issuance with 10 year print

Starving investors of exposure to it should mean that the bank can lower the cost of its next new issue

The sector’s tight valuation versus the likes of KfW is capping demand

◆ French bank goes beyond recent 10 year senior, covered deals ◆ UniCredit pushes pricing in SNP with 5bp NIP ◆ Market open for all as infrequent borrowers also lure big orders

◆ Vast interest for FIG debt capital as investors make €15bn of orders ◆ Periphery tier one and two deals prove very popular ◆ Arkéa struggles to attract interest and pulls 12 year tier two

◆ Authority says banks sport best capital ratios ever thanks to improved profitability ◆ With net interest margins having or close to peak this may be about to turn ◆ Major banks unfazed by higher capital requirements as they boast strong buffers

Dominic Pfisterer had been at UniCredit for 16 years