Zopa raises £80 million in AT1 capital with LSE bond listing
We are pleased to announce that Zopa has today raised £80 million in Additional Tier 1 (AT1) capital from existing and new investors ahead of a period of accelerated growth.
We will use the funds to strengthen Zopa’s balance sheet without diluting shareholders as we prepare to enter everyday banking with the imminent launch of our flagship bank account.
The transaction was completed on the International Securities Market (ISM) of the London Stock Exchange, which allowed us access to high-quality issuers, robust transparency standards, and the credibility of a London-listed bond—all in a market designed for institutional needs.
Jefferies acted as Structuring Adviser and Sole Lead Manager to Zopa on the transaction, which was oversubscribed by over two times from 20+ investors.
Having had a successful €80 million equity fundraise in November 2024, this non-dilutive capital strengthens our balance sheet and positions us firmly on the starting line for our Bank Account launch.
A strong year
This latest capital raise is another strong vote of confidence in Zopa’s momentum and model after a successful 2024.
We recently announced that we doubled full year profits before tax to £34.2 million for the financial year ending 31 December 2024 on a 30.2% revenue jump.
Last year, we also partnered with Britain’s largest electricity supplier Octopus Energy to enter the UK’s £23 billion renewable energy market, and with the retail giant John Lewis to offer personal loans directly to its 23 million customers.
Since launching the bank in 2020, we are proud to have attracted £5.5 billion in deposits and currently has just over £3 billion loans on balance sheet. We now have close to 850 employees and look forward to bolstering our capability by doubling our office footprint with an imminent office move to Canary Wharf.
Backed by sustained profitable growth, we will soon launch the Zopa bank account: our flagship current account with the best all-around value on the market and zero hassle. The account will help us to address an even larger share of our customers’ financial needs.
With profits doubling, strategic partnerships scaling, and innovation firing on all cylinders Zopa is shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons.
