Royal Bank of Sotland, which owns the UK private bank Coutts, said that more than 95 per cent of the shares it offered in its £12 billion ($23.73 billion) rights issue to recapitalise its finances had been taken up by financiers, with the remaining percentage placed yesterday.

The issue, which is the largest of type seen in the European markets, came ahead of a trading update that Edinburgh-based RBS is due to make tomorrow. The capital-raising has been controversial, however, as the move is widely seen as a U-turn by RBS chief executive Sir Fred Goodwin.

Last year, RBS, along with Spanish bank Santander and European banking group Fortis, bought Dutch bank ABN Amro. The deal was completed at the height of the merger and acquisition boom last year before the credit crunch cooled the market for mega deals.