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.