RBS rights issue shares to trade May 15

LONDON (Reuters) - Dealings in new shares related to Royal Bank of Scotland's (RBS.L) record 12 billion pounds ($23.9 billion) rights issue will begin in two weeks, putting it at least a month ahead of a big fundraising by its rival HBOS.

The prospectus for RBS's rights issue, issued late on Wednesday, said dealings in nil-paid new shares would start on May 15, which allows investors to sell their "rights" to new shares. The deadline to accept and pay for new shares is June 6 and dealings in the new fully paid shares starts on June 9.

RBS said early last week it would raise funds to cover increased writedowns on the value of assets hit by the credit crisis and help rebuild its balance sheet in the face of a tough outlook.

HBOS HBOS.L this week followed with plans to raise 4 billion pounds, but it doesn't expect dealings in its nil-paid rights to start until late June and for new shares to start trading until late July.

RBS this week said it would bring forward the payment date for its 2007 final dividend to May 23 from June 6, to allow investors to use the cash to buy new shares.

The prospectus showed the rights issue is expected to cost RBS about 246 million pounds. That includes up to 210 million pounds in fees for underwriters and sub-underwriters already announced, plus other costs such as postage, printing and fees for lawyers and auditors.

(Reporting by Steve Slater, editing by Will Waterman)