British Business Bank agrees ENABLE Guarantee transaction of up to £500m with Oxbury Bank
The deal aims to support term lending to small and medium-sized farming businesses investing in their operations, productivity and growth.
The British Business Bank has agreed an ENABLE Guarantee transaction of up to £500m with agricultural lender Oxbury Bank.
The deal aims to support term lending to small and medium-sized farming businesses investing in their operations, productivity and growth.
It includes a pricing discount for Oxbury on lending that met sustainability measures, such as reducing carbon emissions or using renewable energy.
Under the transaction structure the British Business Bank will guarantee the senior position, whilst Davidson Kempner Capital Management will provide the junior investment.
Oxbury will retain a portion of the credit risk across each underlying agreement.
Business Secretary Jonathan Reynolds said: “Too many good businesses are held back because they can’t get access to the finance they need to invest and grow.
“Whether it’s buying new machinery, expanding the business or making plans for the years ahead, farmers need the confidence that finance will be there when they need it.
“This £500m ENABLE Guarantee will help make that happen.”
Michael Strevens, managing director, structured financial institution solutions at the British Business Bank, said: “This £500m ENABLE Guarantee with Oxbury Bank represents another significant step forward in our support for the farming sector and partnership with Oxbury.
“Bringing another investor into the specialist finance market further demonstrates how using our guarantees can leverage in institutional capital previously unable to access smaller business lending, helping to generate long‑term growth for the UK economy.
“We are delighted to build on our partnership with Oxbury and the £425m of lending we have supported them with recently and look forward to seeing it further grow its support to farming and rural businesses across England, Scotland and Wales.”
James Farrar, co-founder and chief executive of Oxbury Bank, said: “This transaction marks another important milestone in Oxbury’s growth and our mission to support farmers, food producers and the wider rural economy.
“Since 2022, the British Business Bank has been a strong and valued partner, recognising early on the importance of ensuring that agriculture has access to specialist, long-term finance.
“The sector is facing both opportunities and challenges as businesses look to invest in productivity and the transition towards more sustainable farming systems.”
Farrar added: “These investments often require significant capital today, with the benefits realised over many years through stronger yields, supply chains and improved business resilience.
“The British Business Bank has consistently demonstrated an understanding of the vital role agriculture plays in the UK economy, both now and for future generations.
“Their continued support enables Oxbury to expand our successful specialist lending model, helping more farmers access the competitive finance they need to invest with confidence and build a stronger future for British agriculture.”
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