Debt Holders

1. Debt Issuance Programmes
2. Recent Issues
3. Credit Ratings
4. Debt Presentations

The Group's capital raising philosophy is fundamental to the Group's ultimate goal to create a superior sustainable value for its equity and debt investors.

Capital Raising Philosophy

Our philosophy is fundamentally linked to our objective of creating superior sustainable value. As a regular borrower to the market, we aim to:

• diversify our capital base by currency, subordination and investor type and avoid over-reliance on any particular market.
• respond to investor demand through innovation and forethought, while maintaining fair pricing for investors and the Group.
• place particular importance on the liquidity of our issues and carefully monitor the spread performance of our issues in the secondary market.

Debt Issuance Programmes

We filed our first registration statement with the U.S. Securities and Exchange Commission (SEC) relating to U.S. dollar preference shares in 1989.

Since then, we have issued 17 series of preference shares in public offerings in the United States, with proceeds of over $9 billion. To allow for flexibility in capital raising, we established a practice of filing shelf registration statements with the SEC that allow a specified amount of securities, including preference shares, to be issued over time.

For instance, in November 2001, we filed a shelf registration statement; which provided for the issuance of up to $8 billion of securities, all of which would constitute a part of our regulatory capital.

In late 2004, we exhausted all capacity on that registration statement. Consequently, in April 2005, we filed a new shelf registration statement, which provided for the issuance of up to $10 billion of securities.

To date, we have issued five series of preference shares off of this shelf, leaving the capacity for future issuances at $6.175 billion.

RBSG plc & RBS plc £45bn EMTN Programme

This programme is one of the most successful funding vehicles in the market. It offers the issuing entity flexibility in both senior and subordinated markets.

It is multicurrency in nature, promotes diversification and its core documentation ensures that reverse enquiry is dealt with efficiently.

Our EMTN dealers have a number of years experience in this market and are keen to look at new opportunities. The EMTN Programme is traded from London by the Capital Raising Team in Group Treasury.

US$20bn MTN Programme

This programme was launched in November 2004 to complement and further diversify our funding requirements. It aims to target US domestic market investors and access a pool of liquidity that is looking for high quality credits such as RBSG plc and RBS plc.

The US$ MTN programme is traded from London by the Capital Raising Team in Group Treasury.