Yorkshire Building Society has raised £750m to diversify its funding and help pay for its expansion in the mortgage market.
The mutual raised the money from institutional investors yesterday in an oversubscribed covered sterling bond issue, according to the Yorkshire Post.
The bond issue, rated Aaa/Aa1 with ratings agencies Fitch and Moody's, matures in seven years.
After marketing the bonds on Monday, YBS achieved an order book totalling £1.25bn from more than 70 investors, and scaled it back to £750m.
It was the first time YBS has launched a covered sterling bond issue, after previously raising funds via Euro-denominated bond issues.
It last raised 600m euros through a bond issue in September.
"This is for general funding. For example, we intend to increase our mortgage lending by 30% this year," said a YBS spokeswoman.
YBS denied the funding was for mergers. However it recently said it is in advanced talks about merging with Norwich and Peterborough Building Society.
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