British Business Investments has made a new £20m investment in specialist lender Secure Trust Bank’s £90m Tier 2 note issuance.
The investment comes as part of British Business Investments’ Investment Programme, which aims to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.
Secure Trust Bank will use the funds raised from the Tier 2 issuance to increase its volume of lending, including to smaller businesses, supporting the bank’s growth over the medium term.
British Business Investments has committed over £3.3bn to finance providers for smaller businesses since its establishment in 2014.
Secure Trust Bank previously received a £25m subscription from British Business Investments in 2018.
Judith Hartley, CEO, British Business Investments, said: “This £20m investment in Secure Trust Bank supports British Business Investments’ mission to increase the diversity and supply of finance for smaller businesses in the UK.
“Independent operators like Secure Trust Bank help diversify the UK’s smaller business finance market and provide more choice for businesses.
“Following our earlier subscription in 2018, we are pleased to be working with Secure Trust Bank again to support increased smaller business lending across the UK.”
David McCreadie, CEO, Secure Trust Bank, added: “Secure Trust has shown sustained commitment to helping UK business through its real estate finance, commercial finance and motor vehicle dealer stock funding financial products.
“At 30th June 2022, our lending to UK businesses was £1.5 bn of a total customer lending book of £2.8bn.
“We have demonstrated our capability to capture significant growth opportunities across our diversified specialist lending businesses.
“We are pleased with the support we have received from British Business Investments and new investors in our new Tier 2 issuance.
“With this enlarged regulatory capital base we are strongly positioned to continue to help consumers and businesses fulfil their ambitions.”
