Challenger Banks

“We’re pleased that British Business Bank Investments is supporting our profitable growth as we improve access to capital for high quality smaller UK businesses.”

– Tom Wood, CEO, Shawbrook Bank

£60m committed

2 commitments

Our view

“We are a natural investor in structured capital in challenger banks and specialty finance firms. Our investments demonstrate our commitment to increasing volume and the diversity of financing options for smaller UK businesses by supporting fast growing alternative lenders.”

* Figures correct as of March 2016

CHALLENGER BANKS

Our long-term committed funding and flexible investment mandate has enabled us to deploy capital creatively to deliver our goals.

TIER 2 CAPITAL

With our goals and risk appetite, we are natural investors supporting such fund raising.

In October 2015, we made our first investment in a UK challenger bank by investing £30 million in Shawbrook Group plc’s £75 million Tier 2 note issuance. Funds raised from the issue will support Shawbrook Bank’s continued growth with a core part of their strategy being lending to smaller businesses.

In June 2017, we agreed a £30m Tier 2 capital facility with Atom bank, which will enable it grow and lend more to UK corporates and smaller businesses.

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