LONDON, July 25 Britain's government said on
Friday it had raised 154.5 million pounds ($262 million) from
the sale of corporate debt issued by Virgin Money, which the
bank used as part payment for nationalised lender Northern Rock
Virgin Money will repurchase its Tier 1 capital notes from
the government, which will use the proceeds to help pay down the
national debt, the finance ministry said on Friday.
"It is another step in repairing the banks, in reducing our
national debt and in getting the taxpayers' money back," said
junior finance minister Andrea Leadsom.
Virgin Money, the banking arm of Richard
Branson's Virgin Group, agreed to buy Northern Rock from the
government for an initial fee of 747 million pounds in November
It followed that in 2012 with 150 million pounds of Tier 1
capital notes with an annual coupon of 10.5 percent.
The government's UK Asset Resolution (UKAR) "bad bank" still
holds the bad loans of failed lenders Northern Rock and Bradford
& Bingley, which collapsed in 2008 as the financial crisis
UKAR said last month that it had repaid the government 10.4
billion pounds out of the 48.7 billion pounds it owes.
For a story from IFR on Virgin Money's plans, see:
($1 = 0.5892 British pounds)
(Reporting by Andy Bruce; Editing by Susan Fenton)