Amigo Holdings PLC (LSE:AMGO) announced plans to raise capital and is finalising arrangements to start a lending pilot programme, as it looks to return to lending.
The credit provider said it wants to secure £40mln from a capital raise, a mandated part of a customer redress scheme, and increase debt to support further growth.
Any fund raising is likely to be underwritten by one or more institutional investors, Amigo said.
“The board's focus remains on meeting the conditions agreed within the scheme, including a capital raise to be completed by 26 May 2023,” Amigo said in a statement.
Although the FCA has yet to approve a return to lending, the group said: “We are finalising details with regards our proposals to commence a lending pilot. During the pilot, we will be undertaking significant testing to ensure that we are lending affordably.”
“We are confident the mistakes of the past will not be repeated" it said.
Amigo said it expects to meet the initial redress scheme contribution of £97mln noting it currently has unrestricted cash of £125mln.