Zopa Bank, the UK savings and lending bank, has raised £80m via listing a bond on the London Stock Exchange to help it meet capital requirement rules.
Zopa said the raise marked its first-ever LSE bond-listing, which was oversubscribed with more than 20 new and existing investors taking part in the raise.
The raise is what is known as Additional Tier I capital, which helps financial institutions meet capital requirement rules.
The raise does not dilute the equity of existing shareholders.
It follows Zopa raising over €80m (£66m) six months ago ahead of the launch of its current account offering.
Zopa, which has been linked as an IPO candidate, also said that an IPO was not a priority due to public market uncertainty.
Steve Hulme, CFO at Zopa Bank said: “Our latest capital raise is another strong vote of confidence in Zopa’s momentum and model.
"Following a successful equity round just six months ago, this non-dilutive capital strengthens our balance sheet and positions us firmly on the starting line for our Bank Account launch."
Last month, Zopa reported a doubling of pre-tax profits to £31.5m in 2024.
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