Co-op Bank’s £400m fund raising on track

THE Co-operative Bank looks on track to raise the £400m it needs to move forward after the completion of a book-building exercise by investment bank UBS.

The deal will see the lender’s former parent The Co-operative Group reduce its stake from 30% to just over 20% as it is not taking up all its shares in the placing and open offer.

Chief Executive Niall Booker said: “The completion of the book build gives us great confidence that the £400m capital raising will be successfully completed. The offer is now subject to clawback and shareholder approval at a general meeting which will be held in due course.

“This capital will strengthen the Bank for our customers and enable us to continue with our business plan, which aims to return the Bank to its roots as a bank focused on our retail and SME customers with values and ethics at the heart of what we do.

“The speed at which this has been achieved is a great endorsement of the new management team and the work they are doing to turn the business around.  We have a strong relationship with all our major Shareholders and we thank them for their ongoing support.

“Values and ethics remain at the heart of the Bank’s business, as evidenced by the fact they are embedded in the Bank’s articles of association, and this is supported by our shareholders who recognise the importance of this to the future of the Bank and its customers.”

Should the deal progress, it should be completed by June 6.