Atom Bank Announces Signing of £40M Capital Raise

Atom bank, a retail bank in the United Kingdom, has confirmed that its £40m raise will be led by Toscafund Asset Management LLP and BBVA. 

According to the press release, Atom's revenues are growing strongly and the bank is on course to achieve over 100bps of Net Interest Margin (NIM) by the end March 2021. Atom is forecast to have grown lending to SMEs on its balance sheet to over £700m by the end of March 2021, a tripling of business loans in the last 12 months. This growth has been achieved both within the Coronavirus Business Interruption Loan Scheme and also independent of government schemes.

Meanwhile, Atom has also seen strong and profitable growth in its mortgage portfolio, taking over £400m of mortgage applications in the second half of financial year 2020/21. Since launch, Atom has now loaned £2.8bn to UK mortgage customers. The Durham-based lender also confirmed its place in the secondary markets for UK mortgages, issuing a £770m prime mortgage securitisation last year - its third in the series.

Atom CEO Mark Mullen said: "On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so."

As Fazzaco reported in late February, Atom plans to raise £40m from existing shareholders​ as it moves to profitability from its mortgage and business lending within a year, and to IPO the year after.