The Royal Bank of Scotland will unveil plans next week to float a portion of its stake in U.S. retail bank Citizens Financial Group Inc, the Telegraph newspaper reported late on Friday.
A full sale of Providence, Rhode Island-based Citizens could raise more than 8 billion pounds ($12.21 billion) for Britain's largest state-backed lender, which has been under pressure from regulators to strengthen its balance sheet.
Continue Reading Below
RBS was expected to announce a plan to move forward with the IPO when it reports full-year results on Thursday, the newspaper said, citing an unnamed source familiar with the plan.
RBS may aim to spin off up to a 25 percent stake in the next two years, but the bank would also entertain offers from buyers looking for a full stake. Canada's TD Bank was one potential buyer, the paper said.
The RBS board has secured the support of both the Financial Services Authority and UK Financial Investments, which manages the taxpayers' 82 percent stake in RBS.
An RBS spokesman contacted by Reuters declined to comment.
(This story is corrected with potential value of sale to $8 billion pounds from $8 million)
(Reporting by Karl Plume in Chicago; Editing by Vicki Allen)