Bank puts flotation on hold

Clydesdale delays IPO by a day over ratings agency request

Clydesdale BankClydesdale Bank’s flotation has been put back by a day following a last minute demand for more information from one of the ratings agencies which is expected to see a downgrade on the bank.

National Australia Bank Limited said the demerger will go ahead, but the pricing of the shares and conditional trading will take place tomorrow instead of today.

The range was set at between 175p and 235p per share, valuing Clydesdale and Yorkshire banks at between £1.5 billion and £2bn. The price was revised down last month because of stock market volatility.

The Initial Public Offering (IPO) is expected to proceed, with the IPO multiple times covered at 180 pence per CYBG share from international and Australian investors including NAB institutional shareholders.

The company said it has received “a recent specific request from one of the rating agencies for certain financial information relating to its assessment of Clydesdale Bank’s short- and/or long-term deposit rating.”

David Duffy, chief executive, said: “I am delighted that NAB has today confirmed the demerger and that the IPO is expected to proceed.

“Whilst we have a very short delay in launching the IPO it is very important that we commence trading as an independent company in the best possible way. We have made excellent progress with the transaction and we have very strong interest in our story.”

In a statement the bank said:

“The deposit rating is utilised by certain secured funding programmes, which represent 13% of CYBG’s total funding.

“The outcome of this assessment could be a near term downgrade of the short- and/or long-term deposit rating or the placing of such rating on credit watch with negative implications. CYBG is expected to have a senior standalone investment grade credit rating.

“CYBG does not anticipate any such downgrade to have any material impact on its ability to raise funding, the overall cost of funding, or the financial outlook for CYBG. A downgrade of the short- and/or long-term deposit rating would require Clydesdale Bank to take mitigating actions in relation to its existing secured funding programmes.

“This ratings development may not occur, and should it occur, is not considered material to the financial position and outlook of CYBG. However, given the proximity of this request to the IPO, NAB and CYBG have decided to delay finalisation of the IPO for 24 hours. This means that there will be some limited changes to the timetable

“Investors should note that the demerger is proceeding as planned. NAB will trade ex CYBG Securities on Australian Securities Exchange (ASX) on 3 February and CYBG is expected to trade on London Stock Exchange (LSE) on 3 February and on ASX on 4 February.

Revised indicative timetable



Indicative date

NAB shares commence trading on ASX on an ex CYBG Securities basis

3 February 2016

Latest time and date by which CDI Election Forms, Share Election Forms and Sale Facility Forms must be received by the NAB Share Registry if you wish to make a Security Election or participate in the Sale Facility

3 February 2016, 5:00pm (AEDT)

Expected commencement of conditional trading of CYBG Shares on the LSE under the ticker symbol “CYBG”

3 February 2016, 8:00am (GMT)

Expected commencement of deferred settlement trading of CYBG CDIs on ASX under the ticker symbol “CYB”

4 February 2016, 11:00am (AEDT)

Demerger implementation date

8 February 2016

UK admission of CYBG Shares: CYBG Shares commence trading on an unconditional basis

8 February 2016, 8:00am (GMT)

Expected commencement of trading of CYBG CDIs on ASX on a normal settlement basis

17 February 2016

Anticipated latest date for dispatch of Sale Facility Proceeds to Selling Shareholders (or ShareGift, if a Small Shareholder who is a Selling Shareholder so elects)

4 April 2016

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