Propel Finance completes its first private securitisation as part of a £500m financing round

By Joy Dumasia

Propel Finance, the fastest growing asset finance lender in the UK announces its first private securitisation as part of a new £500m financing round. Propel Finance is expanding and diversifying its funding base to support its continuing growth and support for UK SMEs, following multiple initial funding rounds with the British Business Bank. Citi has structured a £275m private securitisation facility, and Quilam Capital has provided an additional £35m mezzanine and working capital facility to enable the partial refinance of Propel’s existing British Business Bank ENABLE funding facility and support further growth.

The financing round supports Propel’s emergence as a leading force in asset finance, following its landmark strategic partnerships with Barclays Business Bank, prominent accountancy firm Azets and global technology leader Samsung, to provide more than one million SMEs with access to fast and flexible finance to acquire equipment and vehicles.

The British Business Bank will continue to be an important funding partner for Propel, with an ENABLE Funding facility that will allow Propel to provide c. £165m of finance to SMEs across the UK.

Just last month, Propel was recognised as the UK’s fastest growing asset finance company by Asset Finance Connect’s AF50 top asset finance lender list alongside traditional bank lenders and long-established independents. Propel’s growth rate has soared to 92% over the last year and reflects both the investment in its team and technology and its desire to work with its partners to provide SMEs with vital access to finance.  

Propel’s strategic advisers were Blake Morgan (Legal) and EY (Corporate Finance), who provided valuable industry knowledge to help structure and complete the transaction and execute on the inaugural securitisation.

Mark Catton, CEO of Propel, said: “We are thrilled to have completed this latest funding transaction, which marks this latest stage of Propel’s growth in our mission to provide accessible finance to SMEs across the UK. We are an important funding partner of the British Business Bank and are excited by the growth opportunities the new funding lines with Citi and Quilam will provide. I should also acknowledge the brilliant work of the Propel team in getting this transaction successfully completed.” 

Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions at the British Business Bank, said: “We are delighted to be supporting smaller businesses via our ENABLE Funding programme and for Propel Finance to enter in this next stage of its development. This first refinancing transaction, alongside the continued funding via ENABLE, will allow Propel to provide smaller businesses with greater access to a wider range of finance options and help create a more diverse finance market.”

Jordan Blakesley, Director at Quilam Capital, said: “Quilam is delighted to have helped facilitate the transaction and provide additional growth capital to Propel Finance. This reinforces our commitment to supply larger businesses with the capital to unlock their growth potential. Propel is a rapidly growing asset finance lender, and we are pleased to be involved in their journey.”