Challenger bank Tandem has raised £60 million in its latest funding round and is planning to use the investment to acquire a ‘green lending’ business.

The funding round was led by the Qatar Investment Authority, according to Reuters news, with the ‘green lending’ business focused on helping consumers to buy solar panels.

The digital bank was reported last year to be tapping up investors for a £100 million raise, with the prospect of a stock market floatation in the next five years.

It secured a banking licence in 2018 after purchasing Harrods Bank, and currently provides credit cards and savings accounts to 800,00 customers.

Tandem Bank has not confirmed the specifics of the fundraising round but a spokesman said: "Tandem Bank can confirm that it has secured a significant fundraise, subject to regulatory approvals. Full details of the transaction will be available in due course.

They added: "The new funding has been secured in partnership with both new and existing shareholders. This injection of significant new capital into the business demonstrates the continued support and belief in the Tandem mission of building a “good bank”."

The statement also confirmed that the bank "will be expanding this offering with the acquisition of an established “Green” lending business as part of the transaction."

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