RBS gets big take-up for rights issue

Royal Bank of Scotland said 95.1 per cent of shareholders had subscribed for its record £12 billion rights issue, leaving about £730 million of shares to be placed by underwriters.

RBS launched the rights issue to rebuild one of the most stretched balance sheets among European banks. Its capital cushion was reduced by its part in last year's takeover of Dutch bank ABN AMRO and by £8 billion of writedowns on risky assets.

The bank offered 11 new shares for every 18 existing shares at 200 pence per share in the underwritten rights issue.

RBS shares were hit by concern at the start of its rights trading period that take-up may be modest, but on Friday bankers and dealers told Thomson Reuters the subscription level would be near 95 per cent.

The cashcall marked an abrupt U-turn for RBS after it had said earlier this year it did not need to raise capital, but several of its European rivals have followed its move, including UBS and HBOS.