Royal Bank of Scotland has launched its first structured products in Spain. Bono RBS 7.8% menos Euribor is a ten-year income bond with a reverse floater feature linked to 12-month Euribor. The product pays coupons every year, 6.574% in the first year and 7.5% minus Euribor thereafter. The product is capital protected and will be traded on the stock exchanges of Madrid and Barcelona. A sister product, 5% Inflación, pays a 5% coupon during the first three years and 2% plus European inflation for the remaining seven.
The bonds are accompanied by a further two fixed income bonds, also aimed at retail and also listed and traded on the two main Spanish stock exchanges. Minimum investment is €1,000. Buy and sell commission on the exchange is 1%.
RBS raised around €3bn in a little over a year for similar bonds in the German, Dutch and Italian retail markets. It is now trying to introduce its business via the new platforms promoted by the Spanish Stock Exchange. It said it wants to bring transparency and efficiency to the market.
All these products are senior debt and can be requested from any bank or savings bank branch or financial intermediary.
Royal Bank of Scotland acquired Dutch bank ABN Amro for £48bn in 2007. The last Spanish products from ABN Amro were issued at the beginning of 2008.
These products are available now in Recent Additions (Spain).