Banco Desio is expected to issue a debut covered bond next week, having today (Tuesday) mandated banks for an institutional investor meeting on Thursday. The deal could be the first benchmark peripheral covered bond since May.

The Italian bank’s debut has been awaited since it established a new Eu3bn soft bullet programme in July.

Banco di Desio e Brianza announced this morning that it has mandated Banca IMI, BNP Paribas, Natixis, Société Générale and UniCredit to arrange meetings with institutional investors in Milan on Thursday, ahead of a potential inaugural euro benchmark obbligazioni bancarie garantite (OBG) issue with an intermediate maturity.

A syndicate banker at one of the leads said the deal will probably be launched next week, subject to market conditions.

The deal, which will be Banco Desio’s first in wholesale markets, is expected to be rated AA- by Fitch. The rating agency’s analysis assumed a Eu500m seven year issue.

The deal could be the first benchmark covered bond from the periphery since 31 May, when Intesa Sanpaolo priced a Eu1bn 10 year OBG.