Dozens of companies listed on the London Stock Exchange updated shareholders on their exposure to the collapse of Silicon Valley Bank and its UK branch.
HSBC said on Monday morning it is taking over the UK part of the collapsed bank, while authorities in the US have said depositors in SVB will have access to all their money from today.
More than 40 London-listed companies posted updates as markets opened on Monday, with Moonpig, THG, Future and Naked Wines among the most prominent.
Greetings card company Moonpig said it has “no material exposure to SVB UK”. It does not have an account with the bank and holds no cash there.
It has the option to borrow around £250 million from 10 banks, of which SVB is one. It had a promise of £13 million of loans from SVB it has not yet drawn.
– Naked Wines
Naked Wines said there is “no loss expected” from the failure. It has £14 million in a “cash sweep account” where SVB was the custodian. This money should be recoverable through the process set up by US authorities.
Before the US Treasury said it would protect depositors, Naked Wines thought there was about £600,000 that may be at risk and was uninsured.
Formerly called The Hut Group, online retailer THG it “does not have any exposure to SVB”, with no cash in one of its accounts or loans from the bank.
Future – the publisher behind PC Gamer, Marie Claire and The Week among others – said it had £1 million in the bank, less than 3% of its total cash on hand.
SVB also provided £50 million of the company’s £900 million loan facilities, with around half already drawn.
Published: 13/03/2023 by Radio NewsHub