RBS makes good on bailout promises as it raises €748m
ULSTER Bank parent Royal Bank of Scotland has raised about £630m (€748m) from its third sale of a stake in Direct Line Insurance, as the bank continues to make good on promises made as part of its bailout.
The sale involved 300m shares at £2.10 each to institutional investors, representing a fifth of Direct Line, the UK’s biggest home and car insurer.
RBS, Britain’s largest government-owned lender, has gradually been reducing its stake in the insurer to comply with EU rules after receiving a £45.5bn bailout in 2008 and 2009. The lender now owns just 28.5pc of the insurer.
“This successful sale keeps RBS fully on track to meet its obligation to divest its stake in Direct Line by end-2014,” said RBS finance director Bruce Van Saun.