Monday, November 28, 2011
Moneyway parent secures £25m on AIM
Secure Trust Bank, parent of the West Midlands-based non-prime specialists Moneyway, has secured £25m in capital investment since opening on the Alternative Investment Market (AIM) on 31 October.
The capital raised will be put in to acquisitions and growth as the bank, active in retail point of sale finance and personal unsecured lending alongside motor finance, funds its lending through money in customer accounts.
David Nield, lending director at Secure Trust Bank, said: “It’s not liquidity for lending. Moneyway is the trading arm of Secure Trust Bank. As a lender you need both capital and fundraising. We raise liquidity through cash deposits.”
The step in to AIM, with Hawkpoint Partners as nominated advisor and Collins Stewart Europe as nominated broker, is a move to secure the capital to expand Secure Trust Bank and Moneyway.
“We’re not reliant on other banks,” said Nield. “We have to point our own capital in to lending. The £25m is capital for the business. We’re in a very strong position because we’re not trying to renew.”
The AIM is the London Stock Exchange’s international market for small and medium enterprises which 3,000 companies have joined since 1995.
Begun in 2009, Secure Trust Bank and its car finance operation has grown in the wake of the credit turmoil of 2008 and the expansion of the non-prime market and now manages an outstanding loan book of £48.4m based on financing vehicles under 10 years old, valued at £15,000 or less and with less than 100,000 miles on the clock.
DATED: 28.11.11
FEED: MF
