In deal that effectively brings to an end its historical links with the Co-operative Group, The Co-Operative bank has come to an agreement with its majority hedge fund investors. Worth £700m, the refinancing package will give it the ability to meet regulations on long-term capital requirements, avoid it being wound down and allow it to continue as a stand-alone lender. Under the package, it will raise at least £443m in a debt-for-equity swap and an additional £250m in new equity from the hedge funds that hold its bonds and shares.