RBS to Raise $2.2 Billion From Citizens Stake Sale

By Ian Walker 

LONDON-- Royal Bank of Scotland Group PLC said Wednesday it plans to raise $2.2 billion from the sale of 86 million shares in Citizens Financial Group Inc. via a public offering.

The largely government-owned bank, based in Edinburgh, said it would sell the stock for $26 a share and that it would use the funds raised for general business purposes. After the sale, RBS will continue to own 23.4% of the common stock of the U.S. lender.

"The sale of Citizens is an integral part of our capital plan. It will help us to create a simpler, stronger and more efficient U.K.-focused bank that can better serve the needs of its customers," Chief Executive Ross McEwan said.

"This offering will leave us owning just over 20% of Citizens. We are now targeting to be able to exit Citizens fully by the end of 2015, a year ahead of the original deadline," Mr. McEwan said.

RBS has been selling off its stake in Citizens in response to political pressure to shift the lender's focus back to U.K. clients. It has already sold 135 million shares of Citizens at $23.75 a share in March, raising $3.2 billion.