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Filed pursuant to Rule 433 | Registration Statement Nos. 333-162219 and
333-162219-01
RBS Exchange Traded Notes
RBS Global Big Pharma ETNs (DRGS)
[GRAPHIC OMITTED]
RBS Global Big Pharma Exchange Traded Notes ("RBS ETNs") are unsecured and
senior obligations of The Royal Bank of Scotland plc ("RBS plc"), and are fully
and unconditionally guaranteed by The Royal Bank of Scotland Group plc ("RBS
Group"). Any payments on the RBS ETNs when they become due at maturity or upon
early repurchase or redemption are dependent on the ability of RBS plc and RBS
Group to pay, and are also subject to market risk.
The return on this RBS ETN is based on the performance of the NYSE Arca Equal
Weighted Pharmaceutical Total Return Index(SM) (Bloomberg symbol: "DGETR
(INDEX)") (the "Index").
The Index
Index Components: The Index comprises stocks and depository receipts of some of
the largest companies involved in various phases of development, production and
marketing of pharmaceuticals.
Equally Weighted: The Index is calculated using an equal-dollar weighting
methodology so that each of the component securities in the Index is represented
in approximately equal-dollar amounts. The Index component weights are set to
equal dollar amounts at each rebalancing. During the quarter, each component's
weight changes independently based on the price movements of each respective
component stock. In addition, the Index is a total return index, which means
that the level of the Index takes into account the cash dividends, if any, paid
on the Index components.
Quarterly Rebalancing: The Index portfolio is rebalanced every quarter after the
close of trading on the third Friday of March, June, September and December.
Index Components(2) -- as of 12/31/2011
---------------------------------------------- -------- ----- -----------
COMPANY WEIGHT (%) TICKER EXCHANGE
---- ----------------------------------------- --------------------------
1. Shire plc 6.45 SHPGY NASDAQ
2. Allergan, Inc. 6.39 AGN NYSE
3. Sanofi-Aventis(1) 6.39 SNY NYSE
4. Merck and Co., Inc 6.33 MRK NYSE
5. Forest Laboratories, Inc 6.33 FRX NYSE
6. Novo Nordisk A/S(1) 6.28 NVO NYSE
7. Valeant Pharmaceutical International(1) 6.27 VRX NYSE
8. Novartis AG(1) 6.27 NVS NYSE
9. P[]zer Inc 6.25 PFE NYSE
10. Bristol-Myers Squibb Company 6.25 BMY NYSE
11. Eli Lilly and Company 6.24 LLY NYSE
12. Abbott Laboratories 6.23 ABT NYSE
13. Astra Zeneca plc(1) 6.22 AZN NYSE
14. Johnson and Johnson 6.19 JNJ NYSE
15. GlaxoSmithKline plc(1) 6.19 GSK NYSE
16. Teva Pharmaceutical Industries Limited(1) 5.73 TEVA NASDAQ
(1) Components are represented in the Index by their depositary receipts traded
on U.S. exchanges.
(2) Source: Bloomberg. The Index Components and Index Summary present actual
historical information on the NYSE Arca Equal Weighted Pharmaceutical Index(SM)
(the Price Return Index). The only difference between the Index and the Price
Return Index is that the level of the Index incorporates the cash dividends paid
on the Index components. See also "Certain Key Terms" on the following page.
Not FDIC Insured. May Lose Value.
RBS ETN Details
-------------------------------------------------------------
Issuer The Royal Bank of Scotland plc
---------------- --------------------------------------------
Guarantor The Royal Bank of Scotland
Group plc
---------------- --------------------------------------------
Ticker DRGS
---------------- --------------------------------------------
Intraday DRGS.IV
Indicative Value
Ticker
---------------- --------------------------------------------
Inception Date 10/21/2011
---------------- --------------------------------------------
CUSIP 78009P135
---------------- --------------------------------------------
ISIN US78009P1350
---------------- --------------------------------------------
Primary NYSE Arca
Exchange
---------------- --------------------------------------------
Maturity 10/25/2041
---------------- --------------------------------------------
Index NYSE Equal Weighted
Pharmaceutical Total Return
Index(SM) (Bloomberg symbol:
"DGETR (INDEX)")
---------------- --------------------------------------------
Annual Investor 0.60% per annum.
Fee
(accrued on a
daily basis)
---------------- --------------------------------------------
Repurchase at You may offer your RBS ETNs
your option to RBS plc for repurchase on
any business day on or prior to
10/17/2041, provided that you
offer a minimum of 20,000 RBS
ETNs for any single repurchase
and follow the procedures
described in the pricing
supplement.
---------------- --------------------------------------------
Early We may redeem all of the RBS
redemption at ETNs at our discretion at any
our option time on or prior to 10/23/2041.
---------------- --------------------------------------------
Daily Upon early repurchase or
Redemption redemption or at maturity, you
Value will receive a cash payment
equal to the daily redemption
value per RBS ETN. The daily
redemption value on the relevant
valuation date will be published
on www.rbs.com/etnUS/DRGS*.
---------------- --------------------------------------------
* Information contained on our website is not incorporated by
reference in, and should not be considered a part of, this
document.
Index Summary(2) -- as of 12/31/11
-------------------------------------------------------------
Number of 16
Components
---------------- --------------------------------------------
Average Market
Cap $77.9 Billion
---------------- --------------------------------------------
P/E Ratio 12.90
---------------- --------------------------------------------
P/B Ratio 2.72
---------------- --------------------------------------------
Dividend Yield 2.94%
---------------- --------------------------------------------
To find out more
Call toll free 855-RBS-ETPS or visit www.rbs.com/etnUS
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Historical Performance (%) -- as of 12/31/2011
---------------------------------------------------------------------- --------------- ----------- ---------- ---------- ----------- -----------
SINCE RBS ETN
INCEPTION ANNUALIZED ANNUALIZED ANNUALIZED
(10/21/11) (%) 1-MONTH (%) 1-YEAR (%) 3-YEAR (%) 5-YEAR (%) 10-YEAR (%)
---------------------------------------------------------------------- --------------- ----------- ---------- ---------- ----------- -----------
RBS Global Big Pharma ETN Daily Redemption Value(1) 6.00 3.90 -- -- -- --
NYSE Arca Equal Weighted Pharmaceutical Total Return Index(SM) 6.12 3.95 11.76 12.95 6.07 3.22
NYSE Arca Equal Weighted Pharmaceutical Index(SM) (Price Return Index) 5.79 3.89 8.76 10.05 3.07 1.06
S and P 500([R]) Index (Price Return) 1.56 0.85 0.00 11.66 0.15 0.92
Source: Bloomberg. The table above presents the actual historical performance of
the RBS ETNs, the Index, the NYSE Arca Equal Weighted Pharmaceutical Index(SM)
(the Price Return Index) and the S and P 500([R]) Index (Price Return) over the
specified periods. The only difference between the Index and the Price Return
Index is that the level of the Index incorporates the cash dividends paid on the
Index components, while the Price Return Index does not. For information
regarding the performance of the Index, see pages PS-11 to PS-15 of the pricing
supplement of the RBS ETNs filed with the U.S. Securites and Exchange Commisson
(SEC). Past performance does not guarantee future results. (1) Includes the
deduction of the annual investor fee, which accrues on a daily basis. The annual
investor fee will be equal to 0.60% per annum.
Country Breakdown -- as of 12/31/2011
[GRAPHIC OMITTED]
Source: Bloomberg. The chart and table above present the country of
incorporation of the companies which equity securities comprise the NYSE Arca
Equal Weighted Pharmaceutical Index(SM) (the Price Return Index). The Index and
the Price Return Index have identical components.
Historical Dividend Yield -- as of 12/31/2011
----------------------------------- ----------------------
DIVIDEND YIELD DIVIDEND YIELD
YEAR NYSE PHARMA INDEX (%) S and P 500([R]) INDEX (%)
---- ------------------------------ ----------------------
2002 1.86 1.81
2003 1.71 1.56
2004 1.83 1.92
2005 2.05 1.80
2006 2.08 1.77
2007 2.31 2.01
2008 3.37 3.16
2009 2.87 2.11
2010 3.25 1.87
2011 2.94 2.12
Source: Bloomberg. The table above presents the actual historical Dividend Yield
calculated based on the cash dividends paid on the component securities of the
NYSE Arca Equal Weighted Pharmaceutical Index(SM) (Price Return) and the S and P
500([R]) Index (Price Return) over the specified periods. Unlike total return
indices, the levels of price return indices do not incorporate any cash
dividends paid on their index components. See "Certain Key Terms" below for the
calculation of the Dividend Yield.
CERTAIN RISK CONSIDERATIONS: The RBS ETNs involve risks not associated with an
investment in conventional debt securities, including a possible loss of some or
all of your investment. The level of the Index must increase by an amount
sufficient to offset the aggregate investor fee applicable to the RBS ETNs in
order for you to receive at least the principal amount of your investment back
at maturity or upon early repurchase or redemption. The Index comprises
securities of a limited number of companies concentrated in the pharmaceuticals
industry, and may not be representative of an investment that provides exposure
to the pharmaceutical industry as a whole. Liquidity of the market for RBS ETNs
may vary over time. The RBS ETNs are not principal protected and do not pay
interest. Any payment on the RBS ETNs is subject to the ability of RBS plc, as
the issuer, and RBS Group, as the guarantor, to pay their respective obligations
when they become due. You should carefully consider whether the RBS ETNs are
suited to your particular circumstances before you decide to purchase them. We
urge you to consult with your investment, legal, accounting, tax and other
advisors with respect to any investment in the RBS ETNs.
The RBS ETNs are not suitable for all investors. You should carefully read the
relevant pricing supplement and prospectus, including the more detailed
explanation of the risks involved in any investment in the RBS ETNs as described
in the "Risk Factors" section of the pricing supplement, before investing.
CERTAIN KEY TERMS: The P/E Ratio, P/B Ratio and Dividend Yield information are
sourced from Bloomberg. P/E Ratio is derived by dividing the closing level of
the Price Return Index as of the specified date by the sum of the trailing
12-month earnings per share of the securities comprising the Price Return Index.
P/B Ratio is derived by dividing the closing level of the Price Return Index as
of the specified date by the sum of the book value per share of the securities
comprising the Price Return Index as of that date. Dividend Yield means the sum
of the gross dividends paid on the securities comprising the Price Return Index
over the prior 12 months divided by the closing level of the Price Return Index
as of the specified date; however, unlike the Index (which is a total return
index), the level of the Price Return Index does not incorporate cash dividends
paid on its components.
IMPORTANT INFORMATION: RBS plc and RBS Group have filed a registration statement
(including a prospectus) with the U.S. Securities and Exchange Commission (SEC)
for the offering of RBS ETNs to which this communication relates. Before you
invest in any RBS ETNs, you should read the prospectus in that registration
statement and other documents that have been filed by RBS plc and RBS Group with
the SEC for more complete information about RBS plc and RBS Group, and the
offering. You may get these documents for free by visiting EDGAR on the SEC's
web site at www.sec.gov. Alternatively, RBS plc, RBS Securities Inc. (RBSSI) or
any dealer participating in the offering will arrange to send you the prospectus
and the pricing supplement at no charge if you request it by calling
1-855-RBS-ETPS (toll-free).
The NYSE Arca Equal Weighted Pharmaceutical Index(SM)and the NYSE Arca Equal
Weighted Pharmaceutical Total Return Index(SM) are service marks of NYSE
Euronext or its affiliates (NYSE Euronext) and have been licensed for use by The
Royal Bank of Scotland plc and RBS Securities, Inc. (Licensees) in connection
with the RBS ETNS. Neither the Licensees nor the RBS ETNs is sponsored,
endorsed, sold or promoted by NYSE Euronext. NYSE Euronext makes no
representations or warranties regarding the RBS ETNs or the ability of the NYSE
Arca Equal Weighted Pharmaceutical Index(SM) or the NYSE Arca Equal Weighted
Pharmaceutical Total Return Index(SM) to track general stock market performance.
NYSE EURONEXT MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY
DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
WITH RESPECT TO THE NYSE ARCA EQUAL WEIGHTED PHARMACEUTICAL INDEXSM OR THE NYSE
ARCA EQUAL WEIGHTED PHARMACEUTICAL TOTAL RETURN INDEXSM[]OR ANY DATA INCLUDED
THEREIN. IN NO EVENT SHALL NYSE EURONEXT HAVE ANY LIABILITY FOR ANY SPECIAL,
PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF
NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. Copyright(c) 2012 RBS Securities
Inc. All rights reserved. RBS Securities Inc., a U.S. registered broker-dealer,
member of FINRA and SIPC, is an indirect wholly-owned subsidiary of The Royal
Bank of Scotland plc.
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value.
Dated January 11, 2012
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