Starling secures £150m bond with record demand and investment-grade rating

Starling Group Holdings Limited has launched its first £150 million Tier 2 bond with record pricing. The offering drew strong interest from major UK, European, and global institutional investors. Demand for the bond surpassed the available notes by more than 2.5 times. The bond carries a fixed interest rate of 6.625% and includes a call option in 2031, with maturity set for 2036. Moody’s assigned it an investment-grade Baa3 rating, priced at a 223.7 basis point spread over UK Gilts. NatWest and Morgan Stanley acted as Joint Lead Managers for the sale.

Raman Bhatia, Starling’s Group Chief Executive Officer, highlighted the positive response from investors. Declan Ferguson, Group Chief Financial Officer, confirmed the proceeds will support general corporate needs. These include investments in Engine by Starling and potential banking licence acquisitions.

The announcement follows Starling Bank Limited’s fifth consecutive profitable year. Its full-year results for 2026 reported £217.1 million in pre-tax profit. Moody’s also affirmed Baa2 long-term deposit and issuer ratings for the bank, with a stable outlook. Starling Group Holdings Limited received a Baa3 issuer rating. The oversubscribed bond strengthens Starling’s financial position. The funds will support growth initiatives and strategic investments. Moody’s ratings and the strong investor demand reflect confidence in the bank’s stability and prospects.