The British Business Bank has finalised a £100 million Enable Guarantee agreement with Oxbury Bank, a leading fintech agri-food financier.
This arrangement represents one of the inaugural 'Enable transactions', where the guarantee offers protection to a pre-existing lending portfolio. Consequently, the capital advantage of the guarantee is realised immediately, enabling the lender to generate approximately £45 million in additional loans for SME agricultural enterprises.
Oxbury Bank, headquartered in Chester, commenced operations as a fully authorised bank in February 2021. It provides a variety of adaptable lending and asset finance options specifically designed for farm businesses through its unique digital banking platform, OxburyEarth. This platform also extends a broad spectrum of advice to farmers on the financial merits of eco-friendly farming practices.
The bank has stated that by providing bespoke funding and data solutions, Oxbury is aiding farming and food businesses in enhancing efficiency and productivity, diminishing carbon footprints, producing renewable energy, cultivating high-quality crops and livestock for domestic consumption and export, and assisting in diversifying revenue sources.
Tim Coates, co-founder and chief customer officer at Oxbury Bank, remarked: "The Enable Guarantee will directly facilitate an additional £45 million in loans to SMEs and represents a significant advancement in Oxbury's rapid development.
"As the sole bank in the UK dedicated to agriculture, Oxbury is committed to assisting farmers and food producers in tackling the dual challenges of food security and transitioning to low-carbon, eco-friendly production. Our relationship-driven approach, powered by our proprietary Oxbury Earth Agtech banking platform, is vital in meeting the requirements of the small and medium-sized enterprises that form the backbone of this essential segment of the British economy."
In September 2022, the bank introduced Oxbury NewGen, a pioneering initiative aimed at funding new farming ventures to give the next generation of farmers the best possible start.
In under three years, Oxbury Bank has surpassed £750 million in total committed and in-progress lending. Additionally, it has attracted £1 billion in savings deposits from farm businesses and consumers eager to support the rural economy and has achieved break-even profitability. The bank aims to reach a £1 billion balance sheet by 2024.