City of London Group Raises GBP15 Million Amid Banking Licence Bid (ALLISS)

LONDON (Alliance News) - Financial services firm City of London Group PLC said Friday it had ...

Alliance News 15 March, 2019 | 3:42PM
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LONDON (Alliance News) - Financial services firm City of London Group PLC said Friday it had raised over GBP15 million in funds in order to support the development of its lending business.

City of London Group raised GBP13.2 million through share subscription of 10.5 million shares at 125 pence each.

A further GBP2.1 million was raised through unlisted unsecured convertible loan notes. The notes come with a annual coupon interest rate of 6% and have a conversion rate of one new share for every GBP1.43 in outstanding principal and interest.

All outstanding convertibles notes will be converted to shares once City of London Group subsidiary Recognise Financial Services Ltd agrees its individual capital guidance with the UK Prudential Regulatory Authority as part of its UK banking licence application.

City of London Group added that the application by Recognise to secure its UK banking licence was continuing to progress.

"We are delighted with the support shown by existing and new shareholders for our strategy," Chief Executive Officer Michael Goldstein said.

"Today's announcement and the commitments to raise in excess of GBP15 million reflects confidence in the team and the strategy that we have laid down for creating an organisation that is positioned to meet the needs of the SME market," Goldstein added. "We continue to see a clear path for generating shareholder value."

Shares in City of London Group were untraded at 140.00 pence each on Friday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
City of London Group PLC 137.50 GBX 0.00 -
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