UK banks unveil capital blueprints
By Robert Barr |
November 4, 2009, Wednesday
|
Print Edition
Print Edition
LLOYDS Banking Group Plc yesterday announced plans to raise at least 21.5 billion pounds (US$35.1 billion) in new capital through a record issue and debt swap.
At the same time, Royal Bank of Scotland Group Plc said it would dispose of assets to comply with conditions for surviving on state aid.
Both banks agreed to curbs on bonus payments, the Treasury said, describing the revised terms for taxpayer support as evidence of a marked improvement in conditions.
Lloyds' shares rose 2.1 percent to 86.8 pence on the London Stock Exchange but RBS stocks fell 3.9 percent at 37.16 pence.
"I believe that what we have got here is better structured," Treasury Chief Alistair Darling said in a British Broadcasting Corp interview. "It is a better deal for the taxpayer."
Lloyds said it would seek to raise a record 13.5 billion pounds through a rights issue, surpassing the 12.5 billion pounds raised in March by HSBC. It also said it would raise at least 7.5 billion pounds from an exchange of debt.
Lloyds, which was also bailed out by taxpayers at the height of the financial crisis, said it would not be subscribing to a government insurance program against losses on toxic assets - a move that will keep the public's stake in the bank at 43.4 percent after the government buys its allocation in the rights issue.
Lloyds said it had a "good revenue performance" in the third quarter and had pared costs by 2 percent so far this year. However, it still expects a full-year loss.
RBS, 70 percent owned by the government, announced that it had negotiated revised terms for insurance on toxic assets and disclosed disposal plans to comply with European Union conditions for receiving state aid.
Part of that deal calls for the government to inject 25.5 billion pounds of fresh capital via the purchase of B shares.
At the same time, Royal Bank of Scotland Group Plc said it would dispose of assets to comply with conditions for surviving on state aid.
Both banks agreed to curbs on bonus payments, the Treasury said, describing the revised terms for taxpayer support as evidence of a marked improvement in conditions.
Lloyds' shares rose 2.1 percent to 86.8 pence on the London Stock Exchange but RBS stocks fell 3.9 percent at 37.16 pence.
"I believe that what we have got here is better structured," Treasury Chief Alistair Darling said in a British Broadcasting Corp interview. "It is a better deal for the taxpayer."
Lloyds said it would seek to raise a record 13.5 billion pounds through a rights issue, surpassing the 12.5 billion pounds raised in March by HSBC. It also said it would raise at least 7.5 billion pounds from an exchange of debt.
Lloyds, which was also bailed out by taxpayers at the height of the financial crisis, said it would not be subscribing to a government insurance program against losses on toxic assets - a move that will keep the public's stake in the bank at 43.4 percent after the government buys its allocation in the rights issue.
Lloyds said it had a "good revenue performance" in the third quarter and had pared costs by 2 percent so far this year. However, it still expects a full-year loss.
RBS, 70 percent owned by the government, announced that it had negotiated revised terms for insurance on toxic assets and disclosed disposal plans to comply with European Union conditions for receiving state aid.
Part of that deal calls for the government to inject 25.5 billion pounds of fresh capital via the purchase of B shares.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
