A clearing bank launched just three years ago is raising tens of millions of pounds of fresh funding just days after it was served with a winding-up petition by the UK tax authorities.
Sky News understands that The Bank of London, which attempted to rescue Silicon Valley Bank UK last year, is progressing plans for the capital-raising, which one person close to the company said could secure “up to £50m”.
The precise figure was unclear this weekend.
The new funding is understood to be being lined up from a number of investors including an entity called Aphorism Holding, according to the person.
Nada Hadadi, a wealthy investor who was suggested as being the primary source of the capital, has in fact only contributed a six-figure sum.
News of the company’s capital-raising plan comes days after it announced that Anthony Watson, its founder and chief executive, was stepping down to become a senior adviser and non-executive director of its holding company.
HM Revenue & Customs had issued a winding-up petition against The Bank of London’s holding company over unpaid taxes.
More from BusinessThe liability has now been settled, according to an insider.
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It described the issue as a “simple administrative handling delay caused by an internal miscommunication, which has been addressed”.
Advertisement“We spoke with HMRC on Friday morning, and they are currently updating the filing.
“While this update may take a couple of days to reflect online, it is in process.”
The Bank of London claims to have amassed 4,500 clients since its launch but was outgunned last year by HSBC in a weekend race to rescue SVB UK.