Issue of Debt

Royal Bank of Scotland Group PLC
7 March 2002

THE ROYAL BANK OF SCOTLAND plc

The Royal Bank of Scotland plc ('the Bank') is pleased to announce that a £500
million (Junior) Subordinated Upper Tier II issue was launched today. The notes
will be perpetual with a first call date of 22 March 2022.

The deal has been priced at a spread of 105 basis points over the UK Treasury 8%
due June 2021.

The lead manager and bookrunner for the deal was The Royal Bank of Scotland,
Financial Markets, with Lehman Brothers International and UBS Warburg as co-lead
managers.

The notes have been issued under the Bank's Euro Medium Term Note Programme, and
are expected to be rated Aa2/A/AA- by Moody's, S&P and Fitch respectively. The
notes will be listed on the London Stock Exchange, when issued.





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

Drapers Gardens

12 Throgmorton Avenue

London EC2N 2DL

Tel: [phone]

Jim Kearney

Senior Vice President, Debt Capital Markets

135 Bishopsgate

London EC2M 3UR

Tel: [phone]




7 March 2002





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