Royal Bank of Scotland Group plc (RBS,RBS.L) said it has reached agreement with the UK Government on key terms of its participation in the Asset Protection Scheme, or APS, on revised terms to those announced in February.
The broad principles of the announcement made on 26 February 2009 remain applicable. However, the key commercial terms which have now been agreed better reflect the current needs of RBS. They combine a reduction in the overall asset pool, a higher first loss piece, and an annual fee as opposed to an upfront lump sum. The re-priced scheme is designed such that RBS absorbs all of the expected losses in a base case economic scenario and only calls upon the second loss HMT cover in the event of a substantial further deepening of the recession. Offsetting this is a higher upfront initial B Share issuance plus a Contingent Capital facility.
The APS remains subject to finalisation of documentation, execution of the terms of accession and the B Share acquisition agreement, shareholder approval and final European Commission and other regulatory approvals.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.