CYBG's subsidiary Clydesdale Bank on Tuesday entered into a joint venture with Salary Finance to add an innovative channel to the company's personal lending business.
The joint venture would compliment CYBG's existing product plans and provide an incremental opportunity to develop the company's unsecured loan business within risk appetite.
Under the agreement, Clydesdale and Salary Finance would each acquire a 50% stake in the joint venture, in return for an initial cash consideration of £0.5m each.
Clydesdale would provide a 6-month rolling credit facility to the joint venture as long as joint venture continued to execute on its business plan.
The debt funding provided by Clydesdale under the credit facility would be for an initial total commitment of approximately £100m, and may increase if agreed to by both parties, CYBG said.