Royal Bank of Scotland (RBS) has this morning announced 95% of the shares in the bank's £12bn cash call have been sold.
The rights issue, the largest in UK corporate history, is aimed at shoring up the bank’s ailing balance sheet following substantial losses as a result of the credit crisis.
Investors snapped up over 5.8bn new shares at 200p, acquiring 11 new shares for every 18 already owned. The new shares were at a 46% discount to the bank’s 366.75p trading level when the rights issue was announced on 22 April.
However, the RBS share price has continued to decline in the last few months, plummeting 5.21% to 245.50p on Friday.
RBS says the rights issue will increase its Tier 1 target capital ratio to 8.5%, from 7.5%.IFAonline
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