Paragon has raised almost £290m in the equity market, thanks to a 90% take-up for its deeply discounted share issue. Financial Times, The Times

The mortgage bank, which announced a 25-for-1 rights issue at a 90% discount last month, was the first UK bank to tap shareholders for cash after the credit crunch left it unable to secure financing.

Britain’s third-biggest provider of buy-to-let mortgages said in a statement it had received valid acceptances for 90% of the stock offered to shareholders at 100p, and later said UBS, the underwriter, had found subscribers for the remaining shares at 102p.

Paragon expects to continue lending, but has said it may be unable to do so if difficult funding conditions persist.