British Business Investments announces £30 mn Tier 2 investment in Shawbrook Bank

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British Business Investments Ltd recently announced a new £30 million subscription in specialist lender Shawbrook Group plc’s £75 million Tier 2 note issuance. The investment follows an original £30 million subscription to Shawbrook Bank’s previous Tier 2 note issuance in 2015, which has now been repaid.

The new subscription provided aims to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders. The capital secured by Shawbrook Bank will enable it to maintain an efficient capital structure and enable it to support growth in its selected 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.”

The Investment Programme aims to offer increased development capital to speciality lenders and challenger banks serving smaller businesses, enabling British Business Investments to support the development of diverse finance markets.

The company is the trading name of British Business Investments Ltd, a wholly-owned commercial subsidiary of British Business Bank plc. It forms part of the British Business Bank’s commercial arm.

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.”