Zopa raises $100m, marks first bond listing on London Stock Exchange

By Gloria Methri

UK digital bank Zopa has raised £80 million ($100m) in Additional Tier 1 (AT1) capital through an oversubscribed issuance on the International Securities Market (ISM) of the London Stock Exchange, its first-ever bond listing. Both new and existing institutional investors backed the raise, which followed a successful €80 million equity round in November 2024.

Unlike equity fundraising, the AT1 issuance strengthens Zopa’s capital base without diluting shareholder ownership. This comes as the bank prepares for a major product milestone: the launch of its Zopa Bank Account, a current account promising unmatched value and user experience.

The offering was more than 2x oversubscribed, drawing interest from over 20 institutional investors. Zopa Group Limited will also re-register as a public limited company (PLC) within six months, further strengthening its governance and market positioning.

“Our latest capital raise is another strong vote of confidence in Zopa’s momentum and model,” said Steve Hulme, CFO at Zopa Bank. “With profits doubling, strategic partnerships scaling, and innovation firing on all cylinders, we are not just gaining speed—we are shifting gears to become the go-to bank providing unmatched ease and value to millions of Britons.”

Financial and Strategic Milestones

• £34.2m ($45m) profit before tax in FY2024 — 2x increase YoY
• 30.2% revenue growth for the same period
• £5.5bn ($7bn) in deposits and £3bn in loans on the balance sheet

The bank is also expanding its footprint through strategic collaborations with Octopus Energy (to tap into the UK’s £23bn renewable energy market) and John Lewis, offering tailored personal loans to its 23 million customers.

With a full UK banking license, Zopa offers customers FSCS-backed protection (up to £85,000 per account), positioning it above many challenger banks and e-money institutions in regulatory rigour and trustworthiness. Jefferies acted as Structuring Adviser and Sole Lead Manager on the transaction.