Rathbones raises £60M in first listed Tier 2 bond
What's the deal? Rathbones Group PlcDealroom has a profile for this one. Try Dealroom → has issued £60 million of new listed Tier 2 notes, its first, to optimise its capital structure and fund general corporate purposes. The FTSE 250 wealth and investment manager will use proceeds partly to refinance £40 million of Tier 2 debt issued in 2021.
The terms: The notes are listed on the London Stock ExchangeDealroom has a profile for this one. Try Dealroom →'s International Securities Market under ticker RATLN. They carry a fixed 8.125% coupon until December 2031, then reset over five-year gilts if Rathbones does not exercise a three-month call option.
Why now? The company cited strong investor demand for the issue. Group chief financial officer Iain Hooley said this "underscores market confidence in Rathbones' capital strength and long-term strategy."
What's the endgame? Management framed the deal as part of a disciplined approach to capital, aimed at supporting the group's ambition to become the leading UK wealth manager. It said the reinforced funding base and added flexibility may benefit clients and shareholders as it pursues growth.
The company: With roots dating back to 1742, Rathbones offers discretionary investment and fund management alongside tax, trust, financial advice, and banking services. It managed £120.7 billion in client assets as of June 30, 2026, and runs 21 offices across the UK and Channel Islands with more than 3,300 staff, including over 750 investment professionals.
The signal: The debut listed Tier 2 bond gives Rathbones a fresh funding channel as it consolidates its position in UK wealth management, a sector under pressure from fee-margin headwinds and regulatory remediation costs.
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