Why will RBS issue New Shares rather than pay an interim dividend in cash?
As indicated in the press announcement dated 22 April 2008, the Board believes that it would be prudent to issue new ordinary shares instead of paying the 2008 interim dividend in cash. The Board of Directors of RBS therefore proposes to replace the 2008 interim cash dividend with an issue of new ordinary shares to shareholders. RBS intends to allot new ordinary shares of 25 pence each by capitalising such amount of RBS’s distributable reserves, share premium account or capital redemption reserve as the Directors may determine up to £250,000,000 and applying this sum in paying up the new ordinary shares.
