Walton & Co, a greenfield start-up planning to enter the UK retail banking market by the end of the year, has received investment pledges worth £95 million from Invesco Perpetual and M&G, according to the Daily Telegraph.
The bank, brainchild of Panmure Gordon analyst Sandy Chen, began sounding out potential investors last week for a £200 million stock market listing during the first quarter.
According to the Telegraph, Chen has received a letter of intent from Invesco, which has offered to invest between £40 million and £50 million in a float, but is not prepared to take a stake of more than 29.5%. M&G will inject up to £45 million but wants a stake of less than 15%.
The funds will be used as capital for new lending and to establish branches in market towns in the southeast of England.
The bank - which is basing its pitch around the slogan 'integrity in banking' - intends to take a "conservative" approach to lending, never loaning more than it holds in deposits, targeting families and small and medium sized businesses.
New bank Walton & Co receives pledges of £95m from Invesco Perpetual and M&G - Telegraph