British Business Investments Ltd, a commercial subsidiary of the British Business Bank, today announces a new £30m subscription in specialist lender Shawbrook Group plc’s £75 million Tier 2 note issuance. The investment follows an original £30m subscription to Shawbrook Bank’s previous Tier 2 note issuance in 2015, which has now been repaid.
The £30m subscription has been provided through BBI’s Investment Programme, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders. Since it launched in 2013, the Investment Programme has committed over £1.2bn to providers of finance to UK smaller businesses.
The capital raised from the Tier 2 issue will enable Shawbrook Bank to maintain an optimised capital structure to support growth in its chosen specialist SME markets.
Judith Hartley, CEO, British Business Bank Investments, said: “Our second investment in Shawbrook Bank will continue to help support its growth trajectory, to the benefit of smaller businesses across the UK. This investment also demonstrates British Business Investments continued commitment to increase the diversity of supply of business finance. Supporting specialist lenders such as Shawbrook Bank helps diversify the finance market, contributing to more choices for UK smaller businesses.”
Dylan Minto, CFO, Shawbrook Bank, said “Establishing long term relationships with investors is a priority for Shawbrook and the strong and continued support shown by British Business Investments Ltd in our Tier 2 issue is testament to the bank’s track record as we shape our strategic intent to become the UK’s Specialist SME Lender of Choice. I hope our relationship with the British Business Bank continues to strengthen as we grow our business and help more SMEs across the UK.”
The Investment Programme unlocks increased development capital to speciality lenders and challenger banks serving smaller businesses, enabling British Business Investments to support the development of diverse finance markets.
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Shawbrook Bank is a specialist UK savings and lending bank founded in 2011 to serve the needs of SMEs and individuals in the UK with a range of lending and saving products. We are a growing UK specialist bank that challenges the conventional approach of the mainstream banks, with our thoughtful and good-sense approach to the way we do business.
As a regulated UK bank, Shawbrook Bank are subject to the regulation of both the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
British Business Investments is the trading name of British Business Investments Ltd, a wholly-owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. It forms part of the British Business Bank’s commercial arm.
British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. Neither British Business Bank nor its principal operating subsidiaries are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The funding from British Business Investments to Shawbrook Group plc does not amount to any endorsement or warranty from British Business Investments, the British Business Bank plc, or the government of the UK.Back