You are here: Home - Saving & Banking - News -

RBS investors “should feel optimistic”

0
Written by:
23/04/2008

Royal Bank of Scotland (RBS) shareholders should feel optimistic about the company’s future after yesterday’s £12bn rights issue, according to the Share Centre.

Nick Raynor, investment adviser at the Share Centre, a share dealing website, said investors taking a long-term view should consider taking up the offer.

“Investors who have stuck with RBS through the recent market turmoil and the ABN Amro acquisition, should feel a little more optimistic about the company’s future, given today’s announcement,” he said.

“RBS has taken the bull by the horns, being the first bank to offer a rights issue on the back of the credit crunch. By doing this they are giving themselves the best possible chance to raise the required capital. It will be interesting to see which banks may follow suit.”

Raynor also explained that the rights issue is fully underwritten, meaning if ordinary shareholders don’t take up the offer, RBS has been fully backed by Goldman Sachs, UBS and Merrill Lynch. “In addition to this, RBS is looking to raise a further £4bn by selling off assets, including its insurance units, such as Churchill and Direct Line. By raising the proposed £12bn this will ensure RBS is on a firmer footing to fight the current economic climate.”

RBS published details of the record £12bn rights issue yesterday. Chairman Sir Tom McKillop said: “This is a difficult time for the financial services industry, and it has presented us with specific challenges.”

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Demand for borrowing constrained

Annual growth in credit card borrowing increased in March, while growth in loans and overdrafts fell slightly, according to figures...

Close