RBS takes pass on call option to redeem floaters, 6.5% notes in May

By Susanna Moon

Chicago, April 23 - Royal Bank of Scotland Group plc said it will not exercise its option to redeem Royal Bank of Scotland NV's A$175 million Bermudan callable subordinated floating-rate notes and its A$575 million 6.5% Bermudan callable subordinated notes, both due in 2018.

The notes were redeemable at par on May 17, according to a company press release.

"Going forward, all decisions to exercise calls on any RBS NV callable capital securities (including the notes) will be made with reference to a variety of internal and external factors, including the prevailing regulatory, economic and market conditions at that time," the release noted.

RBS said it continues to evaluate alternatives to calling the notes, including keeping them outstanding or offering holders "an opportunity to exit through a liability management exercise."

The financial services company is based in Edinburgh.

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