GlobalData
2 min read
The British Business Bank has announced a £10m ($13.3m) investment in Shawbrook Bank's £75m Tier 2 note issuance.
According to the UK Government’s economic development bank, its investment follows a previous £30m subscription to Shawbrook's Tier 2 note issuance in 2020.
The lender’s Tier 2 capital note investments are designed to support recipient banks in expanding their services, thereby increasing the supply of finance to smaller businesses in the UK.
With the capital raised through this issuance, Shawbrook will continue supporting growth in its specialist small business markets.
British Business Bank managing director of direct financial institution solutions Richard Bowen said: “This £10m investment is our third Tier 2 investment in Shawbrook Bank and follows a £150m ENABLE Build transaction in 2024, extending a successful partnership since our first investment in 2015.
“I am delighted to continue our work together to support diversity within the small business finance markets, helping fuel the growth of smaller businesses across the UK.”
Shawbrook Bank CFO Dylan Minto added: “We are pleased to have successfully completed the issuance of £75m Tier 2 capital, strengthening our capital base to support our growth and strategic ambitions.
“We value the continued support from British Business Bank, with their long-term participation serving as a strong endorsement of our strategy and providing the capital foundation to further grow our SME lending, supporting businesses across the UK.”
Last month, Shawbrook extended a £20m revolving credit facility to ScotLend, marking its first transaction with a Scottish-based lender.
This facility aims to enhance ScotLend's presence in the bridging finance market across the UK.
In the full year 2024, Shawbrook's loan book grew by 16% to £15.2bn, driven by strong demand in specialist commercial and retail markets.
However, underlying profit before tax decreased to £294m from £302m in 2023.
"British Business Bank invests $13m in Shawbrook" was originally created and published by Leasing Life, a GlobalData owned brand.
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