RBS plans capped fixed-to-floating notes tied to Consumer Price Index

By Toni Weeks

San Diego, March 21 - Royal Bank of Scotland NV plans to price capped fixed-to-floating-rate notes due March 31, 2018 linked to the Consumer Price Index, according to an FWP filing with the Securities and Exchange Commission.

The initial interest rate is 5%. Beginning March 31, 2012, the interest rate will be the year-over-year change in the index plus 175 basis points, subject to a minimum rate of zero and a maximum rate of 8% per year. Interest will be payable monthly.

The payout at maturity will be par.

The notes (Cusip: 78009KRY0) are expected to price March 29 and settle March 31.

RBS Securities Inc. is the agent.

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