Government now seeking investment banks to run RBS and Lloyds privatisation

UK Financial Investments, the Treasury-owned company managing the UK’s stakes in RBS and Lloyds, has invited investment banks to begin tendering for places advising on the sell-downs.

The full invitation can be read on the UKFI website here. Four tenders have been announced: bookrunner, co-lead manager, capital markets adviser, and financial and/or strategic adviser.

Efinancialnews reports that a source familiar with the matter said the UK government was “looking to refresh its options ahead of the Lloyds and RBS privatisations”. It also reports that UKFI chairman Robin Budenberg is leading the tender process.

At his Mansion House speech last week, chancellor George Osborne said that the sale of RBS was still some way off. He also ignored a recommendation from the Parliamentary Commission on Banking Standards to wind down the UKFI on account of its interference in the sale of the two banks.

The last investment bank to handle a privatisation of a UK financial institution was Deutsche Bank when it handled the sale of Northern Rock to Virgin Money last year.