Retirement specialist the Pension Annuity Friendly Society has raised £16m of new capital, which will help its expansion into new markets and broaden its retirement planning product range.
Pafs hopes to increase its presence in the long-term care market as well as enter the inheritance tax planning arena in addition to making forays into overseas markets.
The capital has been raised through the issue of a debt loan facility underwritten by Bank of Scotland Corporate Banking.
Pafs says this is the first time that such a loan facility has been offered to a friendly society. It says it aims to grow funds under management to £3.5bn from the current £250m.
Bank of Scotland head of corporate banking Jennifer Alexander says: “The Pafs' proposal attracted our attention because it was an innovative method of providing additional growth capital. We believe that it has an attractive range of specialised products.”
Pafs marketing manager Ben Nightingale says: “This extra capital follows a really successful year and will allow us to meet out liabilities and continue to grow while maintaining our mutual status as a friendly society.
“It will allow us to offer more competitive rates on our impaired life and imm-ediate needs products as well as expand into the inheritance tax planning market.”