MW: RBS reportedly may buy back $15 billion of debt
By Simon Kennedy
LONDON (MarketWatch) -- Royal Bank of Scotland (UK:RBS 43.48, +0.75, +1.76%) (RBS 12.96, +0.07, +0.54%) is planning a balance sheet restructuring that could involve more than 10 billion pounds ($15.1 billion) of the bank's debt being bought back at a premium to current prices, the Financial Times reported Tuesday, citing people close to the bank. Finance Director Bruce van Saun is expected to announced the plan within the next couple of weeks, the newspaper said. It added the bank is looking at the model used by Dutch group Rabobank, which has issued contingent capital notes that would be written down by 75% if the bank's capital ratio falls below a pre-set level. U.K. rival Lloyds Banking Group (UK:LLOY 57.77, +0.20, +0.35%) (LYG 3.51, -0.03, -0.85%) has also used contingent capital as part of its capital restructuring.
