RBS to raise £12bn at 46% discount

RBS investors will be offered 11 new shares for every 18 they already own at a discount 200p each, well below the current 366.75p trading level. The news comes as Britain’s second-largest bank announced it expects to make a £5.9bn before tax write-down from credit market exposures this year. RBS says the rights issue will increase its Tier 1 target capital ratio to 8.5%, from 7.5%. Chairman Sir Tom McKillop says RBS faces specific challenges in a difficult time for the financial services industry. “It was the board’s declared intention to rebuild our Tier 1 capital to the middle to uppe...