Royal Bank of Scotland, the parent of the Ulster Bank group, announced a record £12 billion sterling (€15 billion) rights issue this morning to cover a potential £5.9 billion writedown on the value of toxic assets and help rebuild a stretched balance sheet.
RBS said it expects disposals to generate £4 billion in core capital by the end of this year and could sell all or part of its insurance business.
RBS will offer 11 new shares for every 18 existing shares at 200 pence per share in the rights issue, Europe's biggest ever, representing a 46 per cent discount to yesterday's closing price.
The bank estimates the effect of writedowns on core capital will be £4.3 billion net of tax, or £5.9 billion before tax.