Revolut plans to raise $1.5 billion, Sky Says!
The U.S. investment bank has been tasked with selling $500 million worth of shares and $1 billion of convertible loans from the U.K. bank in the coming months, the report said. The loans could be converted into equity if the company were to receive a U.S. banking license, Sky said on Saturday, adding that Revolut declined to comment.
The capital increase would value the company at between $5 billion and $10 billion and make it one of the most valuable of Europe’s financial technology companies, Sky said.
Revolut created a series of retail financial-services products through its app when it was founded in 2015. It started with a pre-paid debit card that didn’t charge transaction fees when traveling and has since branched into services such as foreign currency transfers, budgeting tools and cryptocurrency trading.
Revolut has been looking to add experience to its executive ranks in recent months. Michael Sherwood, the former co-head of Europe at Goldman Sachs Group Inc., is set to join the board as a non-executive director. The firm hired Richard Davies, formerly a banker at HSBC Holdings Plc, as chief financial officer in June.
The company has also been in talks to recruit veteran fund boss Martin Gilbert to its board, Revolut’s Chief Executive Officer Nikolay Storonsky told Bloomberg Television in August. Gilbert will leave Standard Life Aberdeen Plc in May of next year. He currently serves as vice chairman of the U.K. asset manager.