Big Society Capital invests £14.5m in Charity Bank
Big Society Capital has bought almost 40 per cent of the shares in Charity Bank for £4.5m, and has committed to invest another £10m by 2016.
The investment is the largest to date from Big Society Capital (BSC).
BSC now holds a 38.7 per cent stake in the business. The previous major shareholder, the Charities Aid Foundation (CAF), will now own a 34.4 per cent stake. The remaining 19 shareholders, mostly charitable trusts, will own 26.9 per cent.
Patrick Crawford, chief executive of Charity Bank, said the investment is one of the first steps in the plan to grow his bank’s loan book from £55m today to £250m by 2018.
Crawford said the growth would allow the bank to become “sustainably profitable” by the end of 2016.
Charity Bank will also seek other investors to buy share capital, and is discussing the issue with a number of social investors.