Moody's review of Series 2009-1 Covered Bonds

CLYDESDALE BANK PLC

30 St. Vincent Place

Glasgow G1 2HL

(Registered in Scotland under Company Number SC001111)

(the "Issuer")

£600,000,000 Series 2009-1 Covered Bonds due 2017 issued by Clydesdale Bank PLC and guaranteed by Clydesdale Covered Bonds LLP (Common Code: XS0410817166)

(the "Covered Bonds")

Moody's places Clydesdale Bank PLC's covered bonds on review for downgrade

NOTICE IS HEREBY GIVEN TO HOLDERS OF THE COVERED BONDS THAT:

Moody's Investors Service ("Moody's") on 9 September 2013 placed the Aaa rating of the Covered Bonds on review for downgrade. The Moody's press release can be found here: www.moodys.com.

The Issuer confirms that it is in dialogue with Moody's as to potential structural enhancements that may mitigate the impact to the Covered Bonds of the recent downgrade of the Issuer's own short-term and long-term senior unsecured rating. However, no assurance can be given at this time as to the outcome of any such discussions.

Clydesdale Bank PLC

By:

Dated: 10 September 2013

For further information please contact:

Clydesdale Bank PLC

Structured Funding

Tel: +44 (0)20 7710 1447

Email: [email protected]