RBS Plans 3-Yr Euro Covered Bond At Swaps +125 Area

9th Jun 2010 08:23

LONDON (Dow Jones)--Royal Bank of Scotland Group PLC (RBS) is planning its first ever issue of covered bonds, a syndicate official at the bank said Wednesday. Guidance on the three-year, euro-denominated deal has been set in the area of 125 basis points over mid-swaps. RBS met investors to discuss the possibility of issuing covered bonds on a roadshow last month. Covered bonds are high-quality bonds issued by banks to refinance mortgages or public-sector loans. Banks are required to maintain the credit quality loans, sometimes in accordance with specific legislation, and investors have a claim both on the issuing bank and the assets in the cover pool. -by Mark Brown, Dow Jones Newswires; + 44 (0)207 842 9485, [email protected] (END) Dow Jones Newswires June 09, 2010 03:23 ET (07:23 GMT)