9th Jan 2015 12:20
LONDON (Alliance News) - The body that manages the UK government's stakes in bailed out banks is discussing with Royal Bank of Scotland Group PLC a GBP2 billion capital-raising which could dilute the state's shareholding in the lender, Sky News reported on Friday.
Sky News said it has learned that UK Financial Investments, which manages the state's 80% stake in the bank, and RBS are in talks about an additional Tier 1 capital buffer.
Citing insiders, the report said the talks were being complicated because of a clause relating to the bailout of the bank that prevents the taxpayers' shareholding being diluted by the launch of securities such as the ones intended.
On the same day that results of the Bank of England's stress tests last month, RBS said it intends to issue about GBP2 billion of AT1 capital instruments with an expected trigger of 7%.
RBS was immediately available for comment. UKFI declined to comment.
RBS shares were down 1.6% at 371.50 pence on Friday.
http://news.sky.com/story/1404940/rbs-in-talks-with-ukfi-over-2bn-debt-sale
By Samuel Agini; [email protected]; @samuelagini
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