Royal Bank of Scotland Group PLC, the biggest U.K. government-owned bank, will swap or repurchase as much as $23.5 billion of subordinated notes and preference shares in a plan to bolster its capital.

RBS and its National Westminster Bank PLC unit offered to buy back some dollar-denominated preference shares with a face value of $14.3 billion, paying as little as 52 cents on the dollar, the Edinburgh lender said. RBS also plans to swap as much as $9.2 billion of Tier 1 and Tier 2 subordinated securities for new senior notes or cash.

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