Royal Bank of Scotland share price dips after raising £85m through equity issue

Royal Bank of Scotland's share price dipped in early trading this morning, after revealing it had raised £85m through a share issue. 

 

RBS' share price fell 0.5 per cent at pixel time today. 

 

The bank, which yesterday said it expected impairment charges to be significantly lower than expected, revealed it had alloted 23.8m new ordinary shares – an increase of 0.4 per cent on the number of shares in issue – at the subscription price of 355.8p per share. Admission is expected to take place on October 6. 

 

The price was based on the average market price during the period since announcing its second quarter results on August 1. 

 

As a result, RBS has raised £85m. It said the shares were being issued partly to “[neutralise] the impact of 2014 coupon payments on discretionary hybrid capital from a Core Tier 1 capital perspective”.