28 June 2017 - Agreement on the Terms of a Capital Raising Plan to Secure the Long Term Future of the UK’s Leading Ethical Bank
On 26 June 2017, we confirmed that we were in advanced discussions with a group of existing investors on a prospective equity capital raise and recapitalisation.
We are now able to confirm that those discussions have now concluded, and we are pleased to support an equity capital raise and recapitalisation proposal (“the Proposal”) from a group of existing investors. Our board believes the Proposal will enable the Bank to move forward as a viable stand-alone entity, with values and ethics and strong customer service continuing at the heart of our business.
The Board believes the Proposal will position the Bank to meet the enhanced regulatory capital requirements expected of all UK banks.
The Co-operative Bank name, brand and commitment to co-operative values, set out in Ethical Policy will continue unaffected.
The full announcement and details of the Proposal can be found here on our investor relations website: www.co-operativebank.co.uk/investorrelations/bank-sales-process
Further details of the Proposal are expected to be made available in mid-July and we are seeking to complete the Recapitalisation by the beginning of September 2017. This has been discussed and will continue to be discussed with our regulator, the Prudential Regulation Authority (PRA), which supports the efforts we are making to build greater financial resilience.
Implementation of the Proposal remains subject to certain regulatory approvals by the PRA and other parties and is subject to a number of conditions. Accordingly, there can be no certainty that the Proposal will be approved or implemented.
Furthermore, our announcement does not in any way impact deposits or the products customers hold with us, including savings bonds, or the service we provide.
I would like to thank customers for their continued support and loyalty during the sale and Recapitalisation process. We look forward to continuing to provide our ethical banking services in the future, and to making a difference for our customers.