Capital One Financial (COF) is offering a $500 million credit card loan-backed deal that is not eligible for a Federal Reserve program.

The deal, led by Deutsche Bank and RBS, has price guidance of 110 basis points over one-month London interbank offered rate, or Libor, and is due to price later this week, according to a person familiar with the matter.

The bond is not eligible for funding under the Fed's Term Asset-Backed Securities Loan Facility, or TALF, which offers investors cheap loans to buy newly created, highly rated consumer loan-backed deals.

The Fed's facility has helped boost the issuance of such securities and more than $40 billion of such bonds have emerged so far this year.

The asset-backed securities market had been hibernating through the credit crisis until the Fed stepped in with cheap money for investors.

 
   -By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com