Varengold Bank has issued 727,381 new shares and said it will use part of the proceeds to refinance credit platforms in the area of marketplace banking.
The German bank, which has funding agreements with a number of peer-to-peer lenders across Europe, said that its share capital has increased from €9,315,634 (£7,762,238) against cash contributions by €727,381 to €10,043,015.
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All shares were placed at an issue price of €3.85 per share.
Varengold said the management board has succeeded in acquiring other institutional investors in addition to existing investors.
“With the strengthening of the capital base, Varengold Bank is still on a growth path and the new funds will be partly used to refinance credit platforms in the area of marketplace banking,” the statement said.
Varengold issued a trading statement last month that said its earnings before interest and taxes for 2019 looks set to hit €3.6m.
Varengold said this exceeds its previous forecast of €3.2m.