In a move with which the partly state owned bank is hoping that some of its financial worries would be taken care of, the Royal Bank of Scotland has signed the British Government's Asset Protection Scheme, bound by terms that were made public on November 3.
RBS has, by signing, agreed to an "acquisition and contingent capital agreement", under the terms of which, the bank will be required to issue 25.5 billion worth of new capital to the Treasury. The funds will be issued in the form of "B shares" and a share to the dividend access. As for its own part of the deal, the Treasury has promised to subscribe for up-to an additional 8 billion of capital under certain unavoidable circumstances.
As per the terms of the agreement signed, RBS has committed that it will not be paying any dividends for the coming 2 years, or more if required, starting from 30 April 2010. Additionally, if the bank falls short of its balance sheet target for 31 December 2013 by 30 billion or more, it will be forced to engage in an assets disposal.
The bank's participation in the Government's APS is now subject to the shareholders and EU's approval.
- Bitcoin investors call for protection after collapse of two major Bitcoin platforms
- South Yorkshire cottage has been crashed into by 40 cars over last 14 years
- Doctors to Reconstruct People's Faces with Stem Cells from their Fat
- $10 Urine Test is Twice as Accurate as Existing Tests for Prostate Cancer Diagnosis
- People Shorter in height May be Short of Intellect too: Study