ESTIMATED IMPACT OF TENDER OFFERSSource: RNS
NatWest Group plc
23 September 2020
NATWEST GROUP PLC - ESTIMATED IMPACT OF TENDER OFFERS FOR CERTAIN OF ITS OUTSTANDING NOTES
Further to the announcement dated 22 September 2020 "Results of tender offers for certain of its outstanding notes", NatWest Group plc confirms that it has accepted $1,977,326,000 in aggregate principal amount of the securities that were validly tendered. This includes an amount due under Guaranteed Delivery of $9,418,000, which is due to be confirmed at 10pm, London time, 23 September 2020. The principal amount outstanding prior to the tender offer was $4,405,319,000.
NatWest Group plc undertook the offers in order to provide the holders of the outstanding notes with an opportunity to have their notes repurchased while maintaining a prudent approach to the management of NatWest Group plc's capital position.
NatWest Group plc estimates the impact of this transaction will be a charge to income in its Q3 results of approximately £325 million with the final charge dependent on foreign exchange rate movements until the settlement date of 24 September 2020. After taking into account the estimated effects of taxation, and based on risk weighted assets of £181.5 billion as reported for 30 June 2020, this would equate to a reduction in the CET1 capital ratio of approximately 15 bps.
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