RBS shares rise on FTSE 100

The bank's share price was up 2.15 pct at 8:20am.

According to the Financial Times, Britain's 84 pct taxpayer-owned bank, would see 10 billion pounds of the bank's 28 billion pound debt, being bought back at a premium.

In the process of finalising such a move, the bank would be following a number of other banks and companies, including Manchester United football club, in refinancing its debt by issuing bonds.

'Contingent convertibles' as the process is known, involves issuing bonds that require a certain capital conditions/stock prices of the bank to be met, before investors can convert their bonds into stock.

It came into the spotlight last year when Lloyds Banking Group issued a subordinated bond that converted into equity if the bank's capital went below a certain level.

Shares in Lloyd's Banking Group remained stable adding 30p by 8:20 GMT.