Atom Bank raises £149m from shareholders

Atom Bank raises £149m from shareholders

Digital challenger bank Atom has raised £149m from investors including Spanish bank BBVA.

The investment means BBVA has invested a further £85.4m in Atom Bank and now owns almost 40 per cent of the company.

Atom Bank has said it will use the money to roll out new products and build its core capabilities.

Mark Mullen, its chief executive, said: "We are very proud of what we have achieved in the Atom journey to date and we are excited about our plans for the future. This further significant injection of capital secures the bank’s place as a disruptive force in the mainstream of UK banking.

"We will continue to invest in growth, in our technology and in our products as we continue to push ahead with the support of our investors."

BBVA has a waiver meaning it is not required to make an offer to buy the whole of Atom Bank.

Meanwhile Toscafund, another existing shareholder, has invested £54.4m and increased its stake in Atom.

To date Atom has taken £1.3bn of deposits and loaned more than £1.2bn to SME businesses and homeowners in the UK.

BBVA chief executive Carlos Torres Vila, said: "Atom is progressing extremely well and we continue to support the company. We are fully aligned with the vision of banking that Atom is pursuing, and the disruption it is already bringing to the UK financial services sector."

Woodford Investment Management is also a shareholder in Atom Bank but it has not been confirmed whether it took part in the capital raise.