RBS to launch biggest ever UK rights issue

Royal Bank of Scotland yesterday (Tuesday) ended speculation about its rescue rights issue and made public details of the £12bn equity offering. It will be the biggest rights issue ever in the UK, more than double BT Group’s £5.7bn deal in 2001. The rights issue is fully underwritten by bookrunners Goldman Sachs, Merrill Lynch and UBS and comes at a 44.13% discount to the share price, which lost 3.89% in trading yesterday, after the announcement. The Scottish bank will seek shareholder approval in mid-May. For full coverage of the deal, read EuroWeek on Friday.