British Business Bank Provides £100m Guarantee to Oxbury Bank

Published 6 months ago

The British Business Bank has confirmed a £100m ENABLE Guarantee transaction with Oxbury Bank, a leading fintech with a unique focus on farmers, food production, and the rural economy in the UK. This marks one of the initial ENABLE transactions that safeguard an existing portfolio of lending.

Boosting Lending to Agricultural SMEs

The ENABLE Guarantee will have an immediate impact, enabling Oxbury Bank to generate about £45m of extra lending for SME agricultural businesses. Oxbury Bank, which debuted as a fully regulated bank in February 2021, offers a variety of flexible lending and asset finance solutions specifically designed for farm businesses.

Oxbury Bank’s Rapid Growth

In less than three years, Oxbury Bank has surpassed £750m in total committed and in-progress lending. Furthermore, it has attracted £1bn in savings deposits from farm businesses and consumers eager to support the rural economy, reaching break-even profitability. By 2024, the bank aims to have a £1bn balance sheet.

Support for the Agricultural Sector

In addition to its financial services, Oxbury Bank provides a wealth of agricultural experience and banking advice for its clients through a team of dedicated relationship managers. With its proprietary digital banking platform, OxburyEarth, and a strong focus on Environmental, Social, and Corporate Governance issues, the bank aims to help farmers adapt to rapid changes in land transformation and food production due to climate change.

Investing in the Future of Farming

In September 2022, Oxbury Bank launched Oxbury NewGen, a new initiative to provide funding for new farming ventures and advice to give a new generation of farmers the best possible chance of success. Oxbury Bank’s “Responsible Impact” approach is designed to actively help farmers adapt to the rapid changes in land transformation and food production that are necessary in the face of climate change.

Additional Lending for Small Businesses

The British Business Bank’s ENABLE Guarantee will directly support a further £45m in lending to SMEs. The move has been welcomed by both banks, with Tim Coates, Co-Founder and Chief Customer Officer at Oxbury Bank, stating that the bank is on a mission to help farmers and food producers address the twin challenges of food security and the transition to low-carbon nature-friendly production. Meanwhile, Reinald de Monchy, Managing Director, Guarantee and Wholesale Solutions at the British Business Bank, indicated that the transaction will allow Oxbury Bank to provide additional lending to small businesses more quickly.