RBS sub debt holders flee ‘last chance saloon’

With holders of its subordinated debt facing up to an imminent EU ban on coupon payments, Royal Bank of Scotland is close to having generated the £1.25bn of extra core tier one capital it is seeking as part of its latest liability management exercise, according to sources close to the deal. The non-US part of the exercise concluded this week with the UK bank retiring just over £2.25bn of upper tier two debt and just over £2bn of hybrid tier one debt at a discount to par.