LHV UK, a London-based bank service provider, announced on Tuesday that its parent company, LHV Group has secured €35M (approx £30M) through an oversubscribed rights issue (the ‘Fundraise’).
The company will use the funds to capitalise on the new UK bank, which is a significant step in the banking licence application process.
Erki Kilu, CEO of LHV UK, comments, “The funds raised are a key step in the UK banking licence application process. In tandem with this ongoing process, we continue to scale up LHV UK’s operations. We’re currently hiring vigorously for our open positions across London, Leeds, and Tallinn and continue to develop new client-facing products.“
Banking service provider
Its clients vary from fintech unicorns and digital asset companies to established financial institutions with a global reach.
LHV UK offers several banking services, including instant EUR and GBP payments, agency banking, virtual IBANs, safeguarding accounts, multicurrency accounts, and FX.
The company is applying for a UK banking licence as part of LHV Group’s plans to separate the business operations of its retail bank, LHV Bank, from that of fintech focussed LHV UK.
Processes 8% of total transactions in Europe
LHV UK is the founding member and leader in instant EUR payments, processing 8% of the total transactions in Europe.
Its clients reach 500 million end-customers in the UK and Europe by making and collecting payments.
In February 2022, LHV UK submitted its full UK banking license application, which is subject to regulatory approval by the Prudential Regulatory Authority and Financial Conduct Authority.
Madis Toomsalu, CEO of LHV Group, comments, “Confidence in LHV’s plans and activities is strong as our offering was oversubscribed 1.75 times. It is gratifying that the Fundraise turned out to be attractive to existing and new investors, despite the subscription period taking place during a tense geopolitical environment and against the background of declining stock markets. I want to thank investors for their trust – this is a great result that will allow us to capitalise on the new bank that we are looking to establish in the UK.”