UKFI reportedly mulls RBS, Lloyds bond

11th Jun 2009 13:29

UK Financial Investments (UKFI), the government body managing Britain's stakes in Royal Bank of Scotland and Lloyds Banking, could reportedly sell an exchangeable bond in the two part-nationalised banks.According to the Telegraph, UKFI could recoup some of the taxpayer money invested in the lenders by selling RBS and Lloyds stock at a premium to the prevailing price, potentially cashing in on the investments before the shares return to the government's entry level.The paper said officials believe this is the most likely way to sell down the governments stakes and recover funds early.Earlier this week, Lloyds revealed that 87% of shareholders had taken up their entitlement under a £4bn open offer, enabling it to repay early some £2.6bn to the government.