Clydesdale is today (Monday) finishing a roadshow and could launch a debut covered bond, likely in sterling, mid-week, although the format of a trade has yet to be decided, according to bankers. Meanwhile, NCG Banco has released results of a cédulas tender.

Clydesdale, a UK subsidiary of National Australia Bank, was on the road last week having mandated Barclays, NAB, RBS and Santander to work with it on the exercise. The roadshow finishes today, and the issuer could look to launch a deal in the middle of the week, according to a syndicate official working with the bank.

He said that in contrast with the past, quite a few pricing references are available. NAB covered bonds trade very tight, he said, at 85bp over three month Libor bid. NAB launched its first sterling covered bond issue, a £500m three year floating rate note, in January.

The syndicate official also cited secondary market levels of 160bp and 165bp over Libor for Abbey National Treasury Service and Leeds Building Society 2015s, and 190bp over for a Yorkshire Building Society 2016 issue. In fixed rate format, Abbey 2021s and Co-op 2021s are at 255bp and 250bp over Gilts, respectively.

A syndicate official away from the new issue project said that while Clydesdale could tap the euro market a sterling trade makes sense due to savings on the cross currency swap. Clydesdale last June roadshowed ahead of a potential euro benchmark that did not emerge.

Another banker suggested a 20bp-30bp concession to where Clydesdale’s parent trades would be necessary.

Novagalicia Banco is buying back some 19.2% of a Eu1.5bn 4.375% 2019 cédulas hipotecarias pursuant to a tender offer that closed on Friday.

JP Morgan and RBS are dealer managers. The bank will pay Eu266.35 in cash, including accrued interest, for the bonds.