Lender raises £10m ahead of bank launch

Private & Commercial Finance Group (PCFG) has raised £10m which it plans to use to help mobilise its bank launch.

A total of 40 million placing shares were conditionally placed by Panmure Gordon and Stockdale at an issue price of 25p per new ordinary share to raise the £10m for the lender.

The net proceeds will be used to maintain the regulatory level of capital that the group is required to hold as agreed with the PRA and FCA when it received its banking licence in December.

The funds will also be used to purchase high-quality liquid assets to maintain predetermined liquidity ratios for retail deposit taking, provide capital for its growth plans over the medium term and support the cost of mobilising the bank.

"I am very pleased to confirm the successful result of the placing, which illustrates the market’s support for PCFG’s growth prospects and the opportunities provided by the banking licence,” said Scott Maybury, CEO of PCFG.

Scott Maybury
Scott Maybury, CEO of PCFG

“This funding will allow us to secure liquidity ratios recommended by the PRA and FCA, but most importantly achieve a critical component of the bank mobilisation process as the company prepares to become a regulated deposit taker.”

PCFG is also making the open offer of up to 2 million shares available to qualifying shareholders at the issue price, which will also support its working capital requirements.

“It was also important to the company to include an open offer element to the placing, providing an opportunity for our minority shareholders to participate alongside institutions,” Scott added.

“I look forward to updating shareholders on the next chapter in the company’s development as we take our first retail deposits this summer and significantly scale up our loan portfolio.

“This increased scale will allow us to support even more SMEs in financing vital assets, as well as helping more consumers access finance for motor vehicles."

Earlier this month Private & Commercial posted an origination rise of 11.3% ahead of the same period last year.

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