SECURE Trust Bank, a subsidiary of Arbuthnot Banking Group, yesterday defied tough fundraising conditions to place £20m of shares with new and existing investors.
The bank, which is majority owned by Arbuthnot Banking, said it would use the funds to support future growth and potential acquisitions. It will also be used to repay its existing subordinated debt of £5m to Arbuthnot, reducing the parent bank’s stake down from 75.5 per cent to 70.7 per cent.
The new shares were sold at £13.50, about twice the £7.20 price paid for its shares when it floated on the market one year ago.
This a 4.9 per cent discount to the last closing price.
ADVISERS CANACCORD GENUITY
Roger Lambert, who led the £20m share placing for Secure Trust, is chairman of corporate broking at Canaccord Genuity. Despite being a generalist, he has been heavily involved in some of Canaccord’s most recent fund raises in the financial sector.
These include a £25m fundraising for private wealth manager Rathbone Brothers, and its £25m fund raising at the start of this month.
Lambert came under the Canaccord Genuity umbrella after it snapped up Collins Stewart in March 2012, having worked for the firm since 2010.
Before joining Collins Stewart he spent 26 years at stockbroker Cazenove, where he worked in corporate broking.
Working alongside Lambert was Paul Baines, chairman of Canaccord Genuity Hawkpoint, who performed the advisory and Nomad role for Secure Trust.
Baines joined Hawkpoint in 2001, which was then was acquired by Collins Stewart in 2011.
He was previously head of corporate finance at Charterhouse, which was subsequently taken over by ING in 2006.
The Secure Trust deal is the third fundraising in as many weeks for Canaccord’s Financial Services team.
Last week Canaccord was sole broker and adviser to Brookes MacDonald on a £21.5m placing.