Second CCDS offer from Ecology Building Society now open

Ecology Building Society has appointed Allia C&C Ltd to place an issue of Core Capital Deferred Shares (CCDS) with professional investors[i].

The Society is looking to raise up to £6.5m of additional capital to support the next phase of its ambitious growth plans.

This includes expansion into new customer groups, further increasing its membership, and continuing to share more widely its expertise in the growing market for green mortgages.

The sale follows the recent listing of Ecology’s first issue of CCDS on The International Stock Exchange[ii].

The first issue was released in 2020 and enabled strong growth in Ecology’s balance sheet[iii] during the past five years.

“We’re already seeing the results of the substantial investment we’ve been making to improve our systems and create the foundations to underpin further innovation and impact,” said Gareth Griffiths, Ecology Building Society’s Chief Executive Officer.

“Our exciting digital transformation which is nearing completion will enable Ecology to take advantage of significant market opportunities, both now and into the future.

“We will be able to add to our product range, such as introducing fixed rate products, and build on our relationships with mortgage brokers as we seek to double the volume of lending we complete through intermediaries.

“While we still operate today under the same founding principles – driven to support properties, people and projects who have a positive environmental or social impact – we’ve modernised our business model to ensure we and our products remain relevant to changing customer needs and aligned with our sustainability principles.

“In addition, as a prudent and responsible business, as the Society has matured, we’ve developed our risk and governance processes to pre-empt and respond to the evolving regulatory environment.”

Ecology’s new CCDS offer will remain open until 22 August, unless it is closed early.

Read more details here.

[i] The new CCDS may only be offered to eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook (COBS), and professional clients, as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the EUWA) (UK MiFIR)

[ii] The issue was listed in The International Stock Exchange in the Channel Islands as the securities are below the minimum total value of £30m to be eligible for listing on the London Stock Exchange.

[iii] Since the CCDS issue by Ecology in 2020, the mutual has grown total assets year on year and increased its balance sheet by more than £110m (49%).