United Trust Bank issues £20m of Tier 2 debt

United Trust Bank (UTB) has successfully issued £20m of Tier 2 debt to an institutional investment fund which specialises in the financial services sector. The funding will be used to support future growth in the Bank and refinance £11.6m of existing Tier 2 debt.

The 10½ year notes were issued on 30 September 2019 at a rate of 7.5%.

Macquarie Bank acted as placement agent for the transaction.

Jonathan Ayres, Chief Financial Officer of United Trust Bank, commented:

“This is a large Tier 2 capital raise for the Bank, and it has been successfully accomplished in uncertain and challenging times. The interest shown in the offer, and the placing of the debt with an institutional investor, reflects the strength of UTB, the confidence in our position in the specialist lending market and the prospect of considerable future growth.”