Clydesdale sell-off finally takes-off following ratings agency intervention

Shares are now being traded on the London Stock Exchange under the new name CYBG following its demerger from parent company National Australia Bank which bought the Glasgow-based lender in 1987.

The NAB group delayed finalising plans to sell 25 per cent of the shares in CYBG to institutions by 24 hours – until this morning – following an intervention by an unnamed credit rating agency.

The bank told investors: “CYBG 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-term and/ or long-term deposit rating.”

It added: “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.”

The Australian bank stressed: “This ratings development may not occur, and should it occur, it is not considered material to the financial position and outlook of CYBG.”

The bank has confirmed the IPO share price at 180p, valuing it at £1.58bn.

Most of CYBG, which includes Yorkshire Bank, will be owned by NAB shareholders, but 25 per cent of the stock is being sold to institutional investors.

As trading got underway, Clydesdale chief executive David Duffy said the £1.58bn flotation “values the bank fairly in terms of the market”.

He said: “What’s more important for us is that it’s not just the price, it’s the fact that we have become independent for the first time in 100 years and everyone is terribly excited about that.

“We set the price range taking into account the very volatile market that we see, and I think setting it at that range was sensible.”

Mr Duffy said the bank had “no specific plans at this point” for staff changes, including job cuts or branch closures.

He added: “Our main ambition is to set up a strategy where our customers see us as amongst the best service providers in the banking sector in this country, and to be able to do so both on the ground and digitally.

“People tend to equate digital with the elimination of branches - I don’t see that. I think that branches play a fundamental role in the structure of our bank going forward. The advice that people can get locally is very important.

“Trust is all you have as a bank and for myself, my senior team and all of our staff, our priority is to earn that trust. I don’t think you can just tell people to trust you - you have to earn that trust by doing what the customer wants.”