Capital Raising

Royal Bank of Scotland Group PLC
26 April 2001

THE ROYAL BANK OF SCOTLAND PLC

The Royal Bank of Scotland plc ('the Bank') is pleased to announce that the
Euro1 billion Subordinated Lower Tier II issue, which it announced on 18th
April 2001 has now been launched. The notes will be due 10 May 2013.

The deal has been priced at a spread of 114.3 bp against the Bund 5.75% due
January 2011.

The joint bookrunners for the deal were Lehman Brothers and The Royal Bank of
Scotland, Financial Markets, with ABN Amro, BNP Paribas, BSCH, and Deutsche
Bank as co-managers.

The notes have been issued under the Bank's Euro Medium Term Note Programme,
and are expected to be rated Aa3/A+/AA- by Moody's, S&P and Fitch
respectively. The notes will be listed on the London Stock Exchange, where
issued.

Fred Watt, Group Finance Director of The Royal Bank of Scotland Group
commented:

'This issue has received an excellent reception from the European investor
community and we are delighted to have been able to increase the size to meet
investor demand. Europe is an important market for the Group and we are
pleased that there has been such strong investor appetite for this issue'.

The joint bookrunners for the transaction, Lehman Brothers and The Royal Bank
of Scotland, Financial Markets, commented:

'We are delighted to have been involved in this important transaction for The
Royal Bank of Scotland. Demand for the issue, via an exceptionally strong
order book , allowed an increase in the original launch size of Euro750m to
Euro1 billion whilst maintaining pricing at the tight end of the range. This
transaction demonstrates European investors' high regard for The Royal Bank of
Scotland credit and the success of the marketing and execution process. The
issue will be a benchmark for the Euro Lower Tier II sector.'

For further information, please contact:

The Royal Bank of Scotland plc

Fred Watt

Group Finance Director

42 St. Andrew Square

Edinburgh EH2 2YE

Tel: [phone]

Ron Huggett

Capital Raising Director

Waterhouse Square

138-142 Holborn

London EC1N 2TH

Tel: [phone]

Lehman Brothers

Eamonn Price

Managing Director, Debt Capital Markets

One Broadgate

London EC2M 7HA

Tel: [phone]

The Royal Bank of Scotland, Financial Markets

Jim Kearney

Senior Vice President, Debt Capital Markets

135 Bishopsgate

London EC2M 3UR

Tel: [phone]