In brief: Caja Laboral Popular announced a tender for up to Eu450m of covered bonds and asset-backed securities this (Wednesday) morning. BBVA is dealer manager for the buyback.

The Spanish co-operative is offering to buy back up to Eu200m of covered bonds from three issues at cash prices ranging from 93 to 98: Eu1.475bn IM Cédulas 2 at 98; Eu1.06bn IM Cédulas 3 at 97; and Eu1.656bn InterMoney Master Cédulas at 92. The securitisation involved is Eu856.3m IM Caja Laboral 1, Eu250m of which is being tendered for at a price of 80.

RBS analysts said that the minimum repurchase prices offer low initial premiums, of between 0.2%-1.6% over bid prices yesterday (Tuesday), but that take-up could be higher than that in recent Spanish buybacks, in particular given considerably lower liquidity of multi-cédulas compared with single name issues.

Caja Laboral Popular said that it reserves the right to increase the buyback to more than Eu450m. The tender will end on 26 April, with the results announced the next day.