New UK bank receives substantial pledge
(20 January 2010 – UK) A new bank set to enter the UK market received investment pledges of £95 million (A$168 million) as it put into action a marketing plan to raise £200 million to list on the stock exchange.
Walton & Co, set up by Panmure Gordon analyst, Sandy Chen, has received letters of intent from Invesco Perpetual and M&G for the stock.
Invesco has offered to invest between £40 to £50 million, but does not want more than a stake of 29.5 percent and M&G will invest up to £45 million but has stated that they want a stake of less than 15 percent.
The cash call for the new bank comes as the government encourages new players in the banking market; Virgin Money and Metro Bank have also taken advantage of the attractive profit margins for lenders with no bad debts to service.
The funds are said to be used as capital for new lending and to open branches in market towns in Southern England as early as 2011.
The bank, whose slogan is ‘integrity in banking’ plans to be entirely retail deposit funded; a conservative approach to lending by never loaning more than it holds in deposits.
The bank is being pitched as ‘back to basics’ bank with promises of longer opening hours and free parking attempting to target the SME market and affluent families.
Invesco has offered to invest between £40 to £50 million, but does not want more than a stake of 29.5 percent and M&G will invest up to £45 million but has stated that they want a stake of less than 15 percent.
The cash call for the new bank comes as the government encourages new players in the banking market; Virgin Money and Metro Bank have also taken advantage of the attractive profit margins for lenders with no bad debts to service.
The funds are said to be used as capital for new lending and to open branches in market towns in Southern England as early as 2011.
The bank, whose slogan is ‘integrity in banking’ plans to be entirely retail deposit funded; a conservative approach to lending by never loaning more than it holds in deposits.
The bank is being pitched as ‘back to basics’ bank with promises of longer opening hours and free parking attempting to target the SME market and affluent families.
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