LVH UK raises £30m on path to securing UK banking licence

The banking services provider launched its second UK office just two weeks ago in Leeds.

Just four months after submitting its banking licence application, LHV UK has secured £30m in funding via its parent company.

LHV Group has raised the money from an “oversubscribed rights issue”, and a portion of the money will be used to capitalise the new UK bank.

The company said in February of this year that it expects the full process of acquiring the licence to take six to 12 months, and it looks like this money should help move things along in the application process.

 “The funds raised are a key step in the UK banking licence application process,” LHV UK CEO Erki Kilu said.

“In tandem with this ongoing process, we continue to scale up LHV UK’s  operations.”

LHV UK operates in London, Tallinn and, as of two weeks ago, Leeds.

It is going after a banking licence as part of LHV Group’s plans to separate the business operations of its existing retail bank, LHV Bank, from those of the London-based and fintech-focused LHV UK.

It hopes this will simplify compliance with regulatory and supervisory requirements.

“Confidence in LHV's plans and activities is strong as our offering was oversubscribed 1.75 times,” LHV Group CEO Madis Toomsalu said. 

“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.”