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RBS exchange and tender offers to raise £4.5bn

Royal Bank of Scotland subsidiary, RBS Financing, has invited bondholders to exchange or tender certain securities in a move which is expected to raise £4.5bn.

Bondholders have been invited to exchange certain sterling Tier 1 and Upper Tier 2 securities for new senior unsecured RBS notes and bondholders with certain euro and US dollar Tier 1 and Upper Tier 2 securities to tender for purchase by RBSF for cash.

In a statement the firm says: “As a result of the exchange offers, the tender offers and the tender offers in respect of certain other existing securities made in compliance with US tender rules, the group expects to realise an aggregate pre-tax gain of approximately £4.5bn.”

The profit will be accounted for in the bank’s half year results.

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