Co-op Bank in 'advanced talks' over financing deal with existing investors
THE Co-operative Bank is in “advanced talks” over a financing deal with existing investors.
The co-operative bank are in talks with existing investors over a finance deal
The loss-making lender, 20 per cent owned by the mutual Co-op Group, put itself up for sale in February.
A consortium of Qatari and Swiss investment companies emerged as a potential buyer, but prospects for an outside bidder are receding.
A £750million deal to plug the capital shortfall is also being pursued with US hedge funds, which control most of its bonds and shares.
Qatari and Swiss investment companies emerged as a potential buyer
Co-op Bank to be sold in effort to meet bank capital requirements
The bank continues to fully discuss both the sale process and the capital raise options with the Prudential Regulation Authority (PRA)
The bank, which has four million customers, said in a statement that it is “in advanced discussions with a group of existing investors”.
Discussions are ongoing regarding the separation of the Co-op pension scheme.
The bank said: “The bank notes recent media speculation and confirms that it is in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise."
The co-operative bank put itself up for sale in February
It added: "The bank continues to fully discuss both the sale process and the capital raise options with the Prudential Regulation Authority (PRA), which has welcomed the sale and capital raise process.”