The British government will own 57.9% of Royal Bank of Scotland after investors snubbed the group's £15 billion sterling share offer, the bank said today.
The group owns Ulster Bank and First Active here.
RBS said that ordinary shareholders had agreed to take up only 0.24% of the share issue, with the government then taking up the balance, as provided for in its recapitalisation plan for the British banking system.
Existing shareholders subscribed for just 55.98 million of the shares offered, leaving the government to take up the remaining 22.8 billion shares, the bank said.
Last week, shareholders approved plans to raise £20 billion in fresh capital as part of a state rescue deal for Britain's banking sector. Under the plan, RBS was to raise £5 billion pounds directly from the British government in return for preference shares.
Another £15 billion was to come from ordinary shareholders in a share placing underwritten by the Treasury, with that provision now coming into force.
The bank's shares traded below the offer price of 65.5 pence in the run up to the cash call, reducing investors' incentive to participate. RBS shares closed at 55 pence yesterday.
RBS, alongside HBOS and Lloyds TSB which are merging, were bailed out last month after they were hit by the global credit crunch and resulting financial crisis which has savaged markets, banking systems and economies around the world.
