UK neobank Zopa secures $106m in AT1 capital

GlobalData

Thu, May 15, 2025, 4:05 AM 1 min read

Zopa, a UK-based integer bank, has secured £80m ($106.4m) successful Additional Tier 1 (AT1) superior from some existent and caller investors.

It follows an £80m ($106.4m) equity fundraising successful November 2024. The enslaved issuance took spot connected the International Securities Market (ISM) of the London Stock Exchange (LSE).

Jefferies was the structuring advisor and sole pb manager for the transaction that was oversubscribed by much than 2 times, with implicit 20 investors taking part.

The funds volition beryllium utilised to heighten Zopa’s equilibrium expanse portion avoiding shareholder dilution arsenic the institution prepares to motorboat its flagship slope account.

The caller slope relationship aims to connection competitory worth and convenience to customers, addressing a broader scope of fiscal needs.

Zopa’s pre-tax profits doubled to £34.2m ($45.4m) for the fiscal twelvemonth ending 31 December 2024, alongside a 30.2% summation successful revenue.

In addition, Zopa has formed partnerships with large entities specified arsenic Octopus Energy to participate the UK’s £23bn ($30.5bn) renewable vigor assemblage and John Lewis to supply idiosyncratic loans to its 23 cardinal customers.

Zopa volition integrate its digital-first idiosyncratic indebtedness merchandise into the John Lewis Money website, providing the retailer's customers with straightforward and transparent financing options.

Since its slope motorboat successful 2020, Zopa has attracted £5.5bn ($7.31bn) successful deposits and presently holds implicit £3bn ($3.9bn) successful loans connected its equilibrium sheet.

The institution employs astir 850 unit and plans to grow its bureau abstraction with a determination to Canary Wharf.

"UK neobank Zopa secures $106m successful AT1 capital" was primitively created and published by Retail Banker International, a GlobalData owned brand.

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