A SILSDEN-based building society has secured over £7 million of investment to support its growth plans.
Ecology raised the funds through a second issue of core capital deferred shares – CCDS – to professional investors.
The mutual is seeking to double its mortgage lending.
And an ongoing modernisation of its IT systems will provide a foundation for the launch of fixed rate products and to reach new customer groups.
The initiative includes a new app and core banking platform, to improve services for members and mortgage brokers.
Gareth Griffiths, the building society’s chief executive officer, says: “I’ve enjoyed meeting investors and have been pleased by their positive response to our vision for Ecology, as the society continues to grow and evolve.
“Their investment will enable us to significantly increase our impact-led mortgage lending, to projects including community-led housing and green renovations. For every £1m raised through CCDS, we can lend £22m.
“The successful issue coincides with the imminent completion of our exciting digital transformation. This is the latest in a series of major milestones for the business.
“The second CCDS tranche has more than doubled investment in Ecology and I am grateful to our professional advisors for making it possible.”
The share issue was managed by Allia C&C Ltd, which also oversaw the listing of Ecology’s first CCDS issue on the International Stock Exchange earlier this year.
Ben Hall, director of Allia C&C, says: “We are delighted to have acted as advisor and lead manager to place Ecology Building Society’s recent CCDS issue.
“It was placed with a wide range of investors, including West Yorkshire Pension Fund, family offices and other professional investors for whom Ecology’s green mission and ethical standards were an added appeal.
“Building societies are a highly regulated part of our financial markets, serving a wide section of our community. However, because many of them are small, they have to pay higher rates for their debt in the capital markets. Given this, we were delighted to raise this equity issue for Ecology at lower rates than we have seen other smaller banks and building societies pay.”
Mark Russell, head of fixed income at West Yorkshire Pension Fund, says: “We’re delighted at our further investment in Ecology Building Society.
“This represents an ongoing commitment to the company. We are also pleased to help the society grow and continue in its mission towards new homes, energy efficiency and communities.
“It was a pleasure meeting the senior team at Ecology’s head office and we would like to thank all involved.”
