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British Business Bank’s commercial arm supports UK SMEs with investment in Shawbrook Bank

British Business Bank Investments Ltd continues commitment to UK SMEs with Tier 2 investment in Shawbrook Bank as part of £75 million capital raise.

British Business Bank Investments Ltd today announces its investment in specialist lender Shawbrook Group plc’s £75 million Tier 2 note issuance, demonstrating its continued commitment to improving access to capital for UK SMEs.

Funds raised from the issue, which was completed yesterday, will enable Shawbrook Bank to increase its volume of lending to smaller businesses, supporting the bank’s growth over the medium term.

Tom Wood, CEO, Shawbrook Bank Ltd said:

“We’re pleased that the British Business Bank has had the opportunity to support our continued profitable growth as we remain focused on improving access to capital for high quality smaller businesses.”

Peter Wilson, CEO, British Business Bank Investments Ltd, said:

“Our investment in Shawbrook Bank will not only help support the business’ strong growth trajectory, to the benefit of UK SMEs, but will also provide an attractive yield for the taxpayer via an investment in a profitable and well-capitalised bank.

“Our investment demonstrates our commitment to increasing the diversity of small business financial markets by supporting important and fast growing specialist lenders such as Shawbrook.”

British Business Bank Investments Ltd is the commercial arm of British Business Bank plc and invests on purely market terms. This transaction is the latest in a series of commitments by British Business Bank Investments Ltd, and takes its total of completed investments across its portfolio to over £270 million.

ENDS

For more information please contact:

British Business Bank
Nithiya Gnanathas, nithiya.gnanathas@wearesevenhills.com
0207 199 2200
Scott Shearer, scott.shearer@british-business-bank.co.uk

Notes to editors

About British Business Bank Investments Ltd

British Business Bank Investments Ltd is the commercial arm of the British Business Bank, and is a wholly owned subsidiary of British Business Bank plc.

The British Business Bank was established to make finance markets for smaller businesses work more effectively, enabling the sector to prosper, grow and build economic activity.

Its objectives are to:

  • increase the supply of finance available to smaller businesses where markets don’t work well
  • create a more diverse and vibrant finance market for smaller businesses, with a greater choice of options and providers
  • build confidence in the market by increasing smaller businesses’ understanding of the options available to them
  • achieve this whilst managing taxpayer resources efficiently and within a robust risk management framework.

British Business Bank plc is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates through a number of subsidiaries, including British Business Bank Investment Ltd. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. More information can be found at www.british-business-bank.co.uk

British Business Bank Investments Ltd has completed a £30 million investment in Shawbrook Group plc’s £75 million fixed rate reset callable subordinated Tier 2 notes which are due 2025 and have an initial semi-annual coupon of 8.50% (subject to reset in accordance with the terms of the notes).

About Shawbrook

Shawbrook is an independent specialist lending and savings bank serving UK SMEs and consumers with tailored products designed to address a selection of high growth sub-sectors of the overall lending industry.

The Group’s lending activities are primarily funded by a stable retail deposit book consisting of variable rate long-dated notice accounts (mostly 95 – 120 days’ notice) and fixed rate fixed term accounts (mostly one – five years).

Shawbrook Bank Limited is an operating entity of Shawbrook Group plc. In April 2015, Shawbrook Group plc’s shares (SHAW.L) listed on the Main Market of the London Stock Exchange. Shawbrook Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the Financial Services Compensation Scheme.