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BNK closes $13m raise

BNK Banking Corp has raised $13 million from institutional investors, with plans to support the growth of its loan book and to bolster its working capital.

The listed bank issued 18.5 million shares at 70 cents each under its placement, raising $13 million from institutional and sophisticated investors.

BNK has said it will use the funds raised to boost its Tier 1 common equity, aiming to support the growth of its loan book, fund the establishment of a securitisation program under its new five-year alliance with Goldman Sachs and provide general working capital.

Brett Morgan, chief executive of BNK, said the company is “delighted to welcomed a broad range of new shareholders to the register” during a period of growth.

“The successful raising will underpin the continued growth of the bank’s loan book and supports the establishment of the recently announced securitisation program,” Mr Morgan said.

The placement price of 70 cents represented a 16.2 per cent discount to BNK’s closing share price on Friday (21 May), of 84 cents. BNK’s share price was 78 cents when it resumed trading on Wednesday morning (26 May), after a two-day halt.

The issue and trading of the new placement shares are expected to commence on 1 June.

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BNK has signalled plans to launch a new range of products later in the year, as it builds on its digital banking platform.

Recently, the bank forecast a full-year profit for the 2021 financial year in the range of $6.7 million to $7 million, a rise of up to 42 per cent on the year before.

Mr Morgan reported the loan book had grown by 42 per cent during the year to date.

[Related: BNK group signs first RMBS program]

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