(RTTNews) - Royal Bank of Scotland Group plc (RBS: News ,RBS.L: News ), or RBSG, the parent of The Royal Bank of Scotland plc, or RBS, said Friday that the company, along with RBS, signed an accession agreement to the UK Government's Asset Protection Scheme, or APS, on Thursday. The company noted that, as revealed earlier in the month, it has agreed to issue GBP25.5 billion of new capital to the Commissioners of Her Majesty's Treasury, and also decided to stop coupon and dividend payments on certain hybrid capital instruments.

RBSG said today that in addition to the Accession Agreement, it signed an acquisition and contingent capital agreement agreeing to issue GBP25.5 billion of new capital to the Commissioners of Her Majesty's Treasury in the form of B shares and a dividend access share. HM Treasury has also committed to subscribe for up to an additional GBP8 billion of capital in the form of additional B shares in certain circumstances.

The terms of the agreement were announced on November 3. The company said in a statement then that it agreed to issue GBP25.5 billion of new capital to HM Treasury in the form of B Shares which are convertible into ordinary shares. The B Shares qualify as Core Tier 1 Capital.

The Accession Agreement is subject to certain conditions, including approval by RBSG's shareholders and final approval by the European Commission.

The acquisition and contingent capital agreement also is subject to various conditions, including the satisfaction or waiver of all conditions to RBSG's and RBS's participation in the APS, approval by RBSG's shareholders and final approval by the European Commission.
RBSG noted that on Thursday it also entered into a State Aid Commitment Deed with HM Treasury containing commitments and undertakings given by RBSG to HM Treasury. These are designed to ensure that HM Treasury is able to comply with the commitments to be given by it to the European Commission for the purposes of obtaining State aid approval.

As part of these commitments, RBSG has agreed that the company or any of its direct or indirect subsidiaries would not pay investors dividends or coupons on existing hybrid capital instruments during a deferral period, or exercise any call rights in relation to the same between November 24, 2009 and the end of the Deferral Period, unless legally required to do so. The deferral period will begin by April 30, 2010 and will run for two years thereafter. Hybrid capital instruments issued after November 24 shall generally not be subject to the restriction on dividend or coupon payments or call options.

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