PCF Bank has raised £10m on the Alternative Investments Market (AIM), plus an open offer to retail shareholders to raise £750,000.

The fundraise is intended to be used to fund growth in vehicle and asset finance, particularly in the prime market. PCF will also look to grow the recently acquired Azule business, and enable the group’s new property bridging finance to expand beyond its initial pilot scheme.

PCF Bank has set targets of a portfolio of receivables of £750m and a return on equity of 15% by September 2022.

The fundraise was to be made to new and existing eligible institutional and other investors, with the books expected to close no later than 4.30 p.m. (GMT) on 20 February 2019. According to PCF Bank, details of the number of placing shares, the issue price and the approximate gross proceeds of the placing will be announced as soon as possible.

PCF Bank is also providing all qualifying shareholders with the opportunity to subscribe for open offer shares, to raise up to £750,000, with the number of open offer shares to be determined following confirmation of the issue price.

Scott Maybury, chief executive officer of the PCF Group, said: “This equity raise reflects the fact that PCF Bank is on track to achieve our stated target of a £350m lending portfolio ahead of schedule – in 2019 rather than 2020.

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“Since gaining our banking licence we have been able to grow the volume of our retail savings and our lending book considerably faster than we had planned for, without any need to compromise on our target rates or credit quality.

“The £10m we plan to raise today will help provide capital headroom to accelerate growth and support the next stage of the Group’s strategic plan.

“We are ambitious for the next phase of the PCF Group’s development, and are confident that we remain very well placed in both our well established divisions and in our newer broadcast and bridging finance lines.”

PCF Bank saw portfolio growth of 50% to £219m in 2018 from £146m in 2017, giving it £5.2m before-tax profit this year, a 44% increase year-on-year.