Member Article

Virgin Money to repay £154.5 million to government and create 200 jobs

Virgin Money has announced today that it is repaying the Government £154.5m. The firm is also set to create 200 new jobs, with 120 in the North East.

At the time of the acquisition of Northern Rock plc, HM Treasury received £747 million cash and £150m of Tier 1 Capital Notes on completion of the deal, plus a further £73 million cash six months later.

Jayne-Anne Gadhia, Chief Executive at Virgin Money said: “I am delighted to announce the repurchase of the Tier 1 Capital Notes from HM Treasury. The issue of the new Tier 1 Capital Notes marks Virgin Money’s inaugural access to the unsecured debt capital markets. Investor feedback was very positive and the transaction was comfortably oversubscribed representing a significant vote of confidence in Virgin Money.

The support demonstrated by investors is a reflection of Virgin Money’s strong balance sheet, its conservative approach to capital and liquidity and the strong and profitable growth delivered in its core business.“

At a visit to Virgin Money’s operational headquarters in Gosforth, Newcastle upon Tyne, The Chancellor of the Exchequer, George Osborne, congratulated Virgin Money on its progress since acquiring Northern Rock plc, and welcomed the news that Virgin Money will have created 200 jobs during the course of 2014, 120 of which will be in the North East.

The Chancellor said: “A key part of the government’s long term economic plan is to increase competition in Britain’s banking system so that consumers have more choice and get a better deal.

This includes wide-ranging action to support new and smaller banks, so it’s fantastic to see a market challenger like Virgin Money growing, launching new and different products, and creating more jobs here in the North East.“

This was posted in Bdaily's Members' News section by Ellen Forster .