Co-Op Bank to Trade Shares in London as It Raises Capital

The Co-Operative Bank Plc, the U.K. lender that abandoned a bid to buy branches from Lloyds Banking Group Plc, will swap some debt for equity and trade on the London Stock Exchange to plug a capital hole.

Co-Op Bank plans to raise 1 billion pounds ($1.6 billion) in capital by asking existing bondholders to exchange subordinated debt for new equity and senior debt, with 500 million pounds more raised through the sale of insurance assets, the Manchester, England-based company said in a statement today.