11th Apr 2016 08:18
LONDON (Alliance News) - Royal Bank of Scotland Group PLC completed cash tender offers for dollar, sterling and euro senior debt securities ahead of their maturities, with the move to result in RBS booking a loss of GBP66.1 million on the transaction in its second-quarter results.
In a statement, the group and its Royal Bank of Scotland PLC subsidiary said the overall take-up rate of the tender offers was 43.5%, with a total of GBP2.3 billion equivalent tendered.
Upon settlement of the tender offers Royal Bank of Scotland Group will recognise a loss of about GBP66.1 million in its results for the three months to June 30 on a consolidated basis.
The completion of the tender offers is expected to result in combined interest savings to the group and its RBS PLC subsidiary of about GBP171.8 million over the life of the relevant debt securities, which have maturities falling between 2016 and 2025.
The initial loss will be off-set by interest savings over a period of about 2.3 years, RBS said.
The impact of the tender offers is not considered to be material to either the group or the subsidiary, the bank said in its statement.
The tender offers were part of a move to a holding company capital and term funding model, a result of regulation, and included securities RBS does not think comply with requirements for minimum requirement for own funds and eligible liabilities or total loss-absorbing capacity.
Shares in RBS were up 1.2% at 214.00 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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