Issue of Debt

Royal Bank of Scotland Group PLC
20 August 2001


The Royal Bank of Scotland Group plc

20 August 2001

THE ROYAL BANK OF SCOTLAND GROUP COMPLETES THE ISSUE OF $1.2BILLION PERPETUAL
REGULATORY TIER ONE SECURITIES

The Royal Bank of Scotland Group plc ('the Group') has completed the issue
$1,200,000,000 of Perpetual Regulatory tier One securities to be designated
Series 1 ('the Series 1 Dollar Securities') in the United States.

The Series 1 Dollar Securities were issued under a Form F-3 Shelf Registration
Statement which the Group had filed with the Securities and Exchange
Commission, Washington, D.C.. Priced at par and paying a coupon of 7.648%, net
proceeds from the issue, after deducting underwriting commission, total
$1,188,000,000.

Application will be made to list the Series 1 Dollar Securities on the New
York Stock Exchange. No application has been made to list the Series I Dollar
Securities in the UK nor are the Securities being offered or sold to the
public in the UK.

Lehman Brothers and Salomon Smith Barney advised the Group in connection with
the issue

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

'We are delighted with the response of Institutional Investors, not just in
the US but also in Europe, to this issue. The proceeds will be used to for
general corporate purposes and to strengthen our capital base.'

Eamonn Price, Managing Director, Lehman Brothers and Alan Patterson, Managing
Director, Salomon Smith Barney added;

'We are very pleased to have jointly lead managed this issue for The Royal
Bank of Scotland Group. The depth of demand for this issue demonstrates the
high regard in which the Group's management is held by investors'

For further information, please contact:

The Royal Bank of Scotland Group 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]



For Lehman Brothers;

Eamonn Price

Managing Director

1 Broadgate

London

EC2M 7HA

Tel: [phone]

For Salomon Smith Barney;

Alan Patterson

Managing Director

Citigroup Centre

33 Canada Square

London

E14 5LB

Tel: [phone]