Unity Trust Bank has announced that it has bought back 20 per cent of its shares from the Co-operative Bank and raised £8m in new share capital to expand.

Prior to today’s announcement the Co-operative Bank owned 26.7 per cent. It retains 6.7 per cent of its shares, but following the adoption of new articles of association that redesignate all shares into a single class it will no longer have controlling interest or the right to appoint directors.
 
The new articles of association set out the bank’s “social purpose” and make it a requirement that 75 per cent of shareholders are in agreement before changes can be made.

The Co-operative Bank announced that it planned to sell its share in Unity in January 2014.

Unity also announced that it has raised £8m of new capital from new and existing shareholders to finance expansion.

Alan Hughes, chair of Unity Trust Bank, said: “Today’s announcements represent the most significant changes to Unity since the bank was founded 30 years ago.  We are now an independent bank, with a new board, new leadership and the capacity to grow.   

“Our commitment to delivering a double bottom-line of both social and economic benefit is now enshrined in our constitution. Demand for a bank with a social conscience is stronger than ever and I am delighted we have attracted additional capital to be able to meet it."

The bank was founded in 1984 by trade unions.