British Business Bank announces £10m Tier 2 investment in Shawbrook Bank as part of a £75m capital raise
The British Business Bank today announces that it has made a £10m subscription in Shawbrook Group PLC’s latest £75m Tier 2 note issuance.
This follows a previous £30m subscription to Shawbrook’s previous Tier 2 note issuance in 2020.
The Bank’s Tier 2 capital note investments aim to be a catalyst for recipient banks as they grow, increasing the supply and availability of finance to UK smaller businesses. The capital raised will enable Shawbrook to continue to support the growth of its chosen, specialist small business markets.
Richard Bowen, managing director, Direct Financial Institution Solutions, British Business Bank, said: “This £10m investment is our third Tier 2 investment in Shawbrook Bank and follows a £150m ENABLE Build transaction in 2024, extending a successful partnership since our first investment in 2015. I am delighted to continue our work together to support diversity within the small business finance markets, helping fuel the growth of smaller businesses across the UK.”
Dylan Minto, chief financial officer, Shawbrook Bank commented: “We are pleased to have successfully completed the issuance of £75m Tier 2 capital, strengthening our capital base to support our growth and strategic ambitions. We value the continued support from British Business Bank, with their long-term participation serving as a strong endorsement of our strategy and providing the capital foundation to further grow our SME lending, supporting businesses across the UK.”