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Church could receive £60m+ payout from RBS spin off
Church of England commissioners could receive a payout of more than £60m once Williams & Glyn separates from The Royal Bank of Scotland, according to reports.
The CoE commissioners hold a 10% stake in a £600m bond, issued in 2013 to raise funds to help in the separation process of the two firms.
According to Sky News, the bond would be redeemed when the W&G sale completes and the commissioners could be in line for a ‘separate payment’ in addition to a ‘generous annual coupon’ pushing the commissioners’ total return to a figure closer to £80m.
A source close to the consortium told Sky: “The redemption of the bond is allowed under the contractual provisions, the terms of which were commercially agreed between RBS and the investor consortium. In this instance there would be compensation owed to the Church Commissioners.”
However, the final figure will depend on a number of factors, such as the timing and valuation of the sale or flotation.
RBS expects to be separated from Williams & Glyn from April 2017 onwards, but confirmed that it must do so by the end of 2017 due to an arrangement it has with the EU Commission.
A spokesperson for the Church Commissioners confirmed it had a 10% stake in the £600m bond which has been public knowledge for some time.
