Subordinated Notes

ROYAL BANK OF SCOTLAND GROUP PLC
13 July 1999


THE ROYAL BANK OF SCOTLAND plc
US$ 150 MILLION DATED SUBORDINATED NOTES

The Royal Bank of Scotland plc ('the Bank') is pleased to announce that it has
offered US$ 150 million Dated Subordinated Notes ('the Notes'), due 26 October
2009, and with a call option at 26 October 2004.

The Notes will pay a coupon of 3 month US$ LIBOR plus 57.5 basis points until
26 October 2004 and if the Bank does not call the issue the coupon will
increase to 3 month US$ LIBOR plus 107.5 basis points.  The Notes have been
offered at an issue price of 99.93 per cent.

The issue is being lead managed by HSBC Markets.

The Notes will be issued under the Bank's Euro Medium Term Note Programme as
Dated Subordinated Notes and should be rated AA- by Fitch IBCA Limited, A1 by
Moody's Investor Services, Inc and A by Standard & Poor's Rating Services, a
division of the McGraw-Hill Companies, Inc. It is proposed that the Notes,
when issued, will be listed on the London Stock Exchange.

It is expected that the Financial Services Authority will confirm that the
Notes qualify as Lower Tier Two capital.

13 July 1999

For further details, contact:-

The Royal Bank of Scotland plc
Ron Huggett, Capital Raising Director
Tel: [phone]

HSBC Markets
Nicholas Medd, Head of Syndicate
Tel:[phone]