21 Sep 2009

Speculation that RBS planning share issue

5:52 pm on 21 September 2009

Royal Bank of Scotland is keeping quiet on speculation it is planning a share issue to prevent the British government's stake in the bank rising.

It has been reported that the bank is considering the move to repay almost £20 billion it owes for taking part in the government's toxic debt insurance scheme.

If the bank can raise the funds privately, it would stop the government's stake rising from 70% to 84%.

RBS shares have been recovering this year, trading at 56 pence compared with a low of 10 pence in January.