Government sells holding of Tier 1 Notes to Virgin Money
Government has today (25 July 2014) sold its holding of Tier 1 Notes issued by Virgin Money.
皇冠体育app government will receive 拢154.5 million cash for the notes, which were issued to HM Treasury in January 2012 at a par value of 拢150 million as part of the sale of Northern Rock plc.
After a competitive process among a number of potential purchasers, Virgin Money was selected by UK Financial Investments (UKFI) as the winning bidder.
皇冠体育app sale has secured further value for the taxpayer and will be used to pay down the national debt. It is part of the government鈥檚 long term economic plan to build a stronger and safer banking sector. 皇冠体育app government received advice from UKFI that it would be appropriate to sell these notes. 皇冠体育app government agreed with that advice and authorised the process to begin.
皇冠体育app Economic Secretary to the Treasury, Andrea Leadsom, said:
I can confirm today that we have sold our holding of Tier 1 notes, issued by Virgin Money for 拢154.5 million. This represents good value for the taxpayer and the money will be used to reduce the national debt.
This is another step in the government鈥檚 long term economic plan to deliver a more secure and resilient economy. It is another step in repairing the banks, in reducing our national debt and in getting the taxpayer鈥檚 money back.
Tier 1 notes are capital instruments and were used by Virgin Money, along with cash payments, to pay for Northern Rock plc.