RBS plans to sell 30-year notes linked to RBS BRIC Trendpilot index

By Marisa Wong

Madison, Wis., July 13 - Royal Bank of Scotland plc plans to price RBS BRIC Trendpilot notes due 2041, according to a 424B5 filing with the Securities and Exchange Commission.

The notes are linked to the RBS BRIC Trendpilot index, which tracks four benchmark indexes: the BNY Mellon Brazil ADR Total Return index, the BNY Mellon Russia Select DR Total Return index, the BNY Mellon India Select DR Total Return index and the BNY Mellon China Select ADR Total Return index.

If, however, the closing level of any benchmark index is below its 100-day simple moving average for five consecutive business days, the Trendpilot index will instead track a cash rate equal to the yield on a hypothetical notional investment in three-month U.S. Treasury bills for the portion of the index allocated to the negatively trending benchmark index. The Trendpilot index will have no exposure to the benchmark index until the benchmark index exhibits a positive trend - closing at or above its 100-day simple moving average for five consecutive days.

Each Trendpilot index component, which is either a benchmark index or a cash rate, will have an initial weight of 25%. The benchmark indexes will be rebalanced quarterly so that the Trendpilot components will be equally weighted.

The daily redemption value will equal $25 per note at pricing. The daily redemption value on any day thereafter will equal the daily redemption value on the preceding date times the index factor and minus an investor fee. The index factor on any day will equal the Trendpilot index closing level on that day divided by the index closing level on the preceding day. The investor fee will equal 1.1% per year when the Trendpilot index is tracking one or more benchmark indexes and 0.5% per year when the Trendpilot index is only tracking the cash rate.

The payout at maturity will be the daily redemption value on the final valuation date.

The notes are callable and putable at any time. Investors must put a minimum of 10,000 notes.

RBS Securities Inc. is the agent.

The Cusip is 78009P119.

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