The Royal Bank of Scotland Group plc
Impact of recent Liability Management Exercise
8 April 2016
The Royal Bank of Scotland Group plc ("RBSG plc") and The Royal Bank of Scotland plc ("RBS plc") have completed their recent cash tenders of certain of their US dollar, sterling and euro senior debt securities (the "Tender Offers"). The Tender Offers are part of the on-going transition to a holding company capital and term funding model in line with regulatory requirements and included securities that are considered by RBSG plc to be non-compliant for TLAC/MREL purposes.
The overall take up rate of the Tender Offers was 43.5% with a total of £2.3 billion (equivalent) tendered. Upon settlement of the Tender Offers RBSG plc will recognise a loss of c. £66.1 million in its Q2 2016 results on a consolidated basis and the completion of the Tender Offers is expected to result in combined interest savings to RBSG plc and RBS plc of c.£171.8m 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 c.2.3 years. The impact of the Tender Offers is not considered to be material to either RBSG plc or RBS plc.
RBSG plc will announce first quarter results for 2016 on 29 April.
For further information, please contact:
Head of Investor Relations
+44 (0) 20 7672 1758
RBS Media Relations
+44 (0) 131 523 4205
Forward Looking Statements
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