Alitalia, the national airline in Italy confirmed that it is issuing a convertible bond for a recapitalisation as Fiat, the Italian car manufacturer, considers an equity-linked issue to stave off a credit rating downgrade.

Banca IMI could be involved in both deals. IMI is one of Fiat's biggest creditors with IntesaBci and Banca di Roma. The three banks will lead manage a three-year convertible bond from the auto manufacturer which will be worth around €3bn ($2.8bn), according to Il Sole 24 Ore, the Italian newspaper. Spokesmen for the banks and for Fiat declined to comment.