Government sells holding of Tier 1 Notes to Virgin Money
The government will receive £154.5 million cash for the notes, which were issued to HM Treasury in January 2012 at a par value of £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.
The sale has secured further value for the taxpayer and will be used to pay down the national debt. It is part of the government’s long term economic plan to build a stronger and safer banking sector. The government received advice from UKFI that it would be appropriate to sell these notes. The government agreed with that advice and authorised the process to begin.
The 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 £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’s 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’s money back.
Tier 1 notes are capital instruments and were used by Virgin Money, along with cash payments, to pay for Northern Rock plc.
Latest News from
UK agrees transition toward new global tax system22/10/2021 15:20:00
The UK yesterday (21 October 2021) agreed a route forward to transition away from its Digital Services Tax (DST) towards a new global tax system that will ensure multinationals pay their fair share in the countries where they do business.
Statement on transition to new Pillar 1 international tax rules22/10/2021 13:20:00
The United Kingdom, Austria, France, Italy, Spain and the United States Announce Agreement on the Transition from Existing Digital Services Taxes to New Multilateral Solution Agreed by the OECD-G20 Inclusive Framework.
Second UK Green Gilt raises further £6 billion for green projects22/10/2021 11:10:00
The second sale of the UK’s Green Gilt has raised a further £6 billion to help fund green projects across the country, drive progress to net zero and create jobs across the UK.
Prime Minister's automotive roundtable: 19 October 202120/10/2021 13:28:00
Prime Minister Boris Johnson met with representatives of the automotive sector to discuss the UK’s electric vehicle revolution.
Chancellor sets new standards for environmental reporting to weed out greenwashing and support transition to a greener financial system19/10/2021 15:20:00
Certain large businesses will need to set out their green credentials to potential investors under new world-leading reporting rules outlined yesterday by the Chancellor.
Global Investment Summit Speech19/10/2021 11:10:00
The Chancellor made a speech at the Global Investment Summit today (18 October 2021).
UK and Scottish governments agree first stage of the Fiscal Framework Review15/10/2021 14:25:00
The UK Government and Scottish Government yesterday (14 October 2021) agreed in principle the scope of the independent report that will inform the subsequent review of the Scottish Government’s Fiscal Framework.
G7 Finance Ministers agree to work together to address global supply chain pressures14/10/2021 12:05:00
The Chancellor has welcomed an agreement from G7 Finance Ministers to work together to monitor supply chain pressures as the global economy rebounds from the pandemic.