Treasury to raise £1.1bn selling NatWest shares
RBS was rescued in 2008
Natwest (RBS) has moved a step closer to fully returning to private ownership after government officials announced the planned sale of a further 5% of the bank.
UK Government Investments, which manages the Treasury’s stake, said it would sell around 580m shares to investors this week.
In a statement issued just after the market closed, UKGI said the latest sale will reduce its stake from 59.8% to 54.8% and raise around £1.1billion for the Treasury.
It will be the first time it has sold any of its shares in the bank to external investors since 2018.
Labour Chancellor Alistair Darling agreed to take an 84.4% holding in RBS in a £45.5billion bailout in 2008 to save the bank from collapse. The Treasury began reducing its stake in 2015.
Despite raising badly needed funds, the latest sale represents a heavy loss for the Government.
Natwest stock was bought at 502p at the time of the bailout and is now trading at under 200p.
It is being held back partly by claims of money laundering activity by one of its customers.