RBS goes ‘Coco’ in latest bond issue

7 Aug 2015

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The pricing of two issues of contingent convertible bonds, or Cocos, has raised just under £2 billion to bolster Royal Bank of Scotland’s capital position.

They will trade on the Irish stock exchange.

The additional tier one capital includes $2m in five-year notes paying 7.5 per cent and $1.15m in 10-year notes paying eight per cent.

They will reduce the state-owned lender’s leverage ratio to 5.3 per cent (at June 30), assuming the divestment of Citizens.

Chief executive, Ross McEwan, said: “This is another important step in the road towards becoming a much stronger, safer bank.

“Improving our capital resilience has been an integral part of our plan and we are well on track to achieve this.”