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OneSavings Bank based in Chatham formed from Kent Reliance Building Society aims to float on London Stock Exchange

07 May 2014
by Chris Price

The lender formed from the former Kent Reliance Building Society has announced its intention to float on the London Stock Exchange.

OneSavings Bank was launched in 2011 after the corporate reorganisation of Chatham-based KRBS by American private equity group J.C. Flowers & Co.

The company is hoping for a valuation of up to £500m from the float, which will generate about £41.5m of new money.

Kent Reliance is part of OneSavings Bank

Kent Reliance is part of OneSavings Bank

It aims to float about 30% of its shares in its initial public offer but says it is committed to keeping its headquarters in Chatham.

The group trades under the Kent Reliance, Interbay, Prestige, Heritable, Jersey Home Loans and Guernsey Home Loans brands in the UK and Channel Islands.

Through the Kent Reliance brand, the group had about 142,000 savings customers with around 180,000 savings accounts at the end of the 2013 financial year.

The move is the latest step in the revival of the Kent Reliance after the financial crash of 2008 and its subsequent takeover by J.C. Flowers & Co in 2010, who still want to retain a significant shareholding in the business.

Since arriving from Midlands-based Saffron Building Society in January 2012, OneSavings Bank chief executive Andy Golding has put new management in place.

Andy Golding, chief executive, Kent Reliance and OneSavings Bank

Andy Golding, chief executive, Kent Reliance and OneSavings Bank

To demonstrate his commitment to the business, the Maidstone-raised banker plans to move his family from their home in Northamptonshire to St Mary's Island, Chatham, which he currently splits his time between.

Mr Golding said: "We have made enormous progress since the bank was created three years ago thanks to the support of our shareholders and the hard work of all our dedicated staff.

“In 2013 we improved our underlying profitability very significantly by attracting more savers and borrowers and keeping costs under tight control.

“We have a deep understanding of our markets and are confident we can continue to grow using our specialist, flexible and personal approach to lending and saving.

“A stock exchange listing is the next natural step in the evolution of the business, providing us with access to the capital markets to enable us to invest for future growth.”

The flotation is expected in mid June.

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