British Business Bank increases financing for Oxbury Bank by $125m

The British Business Bank has expanded its ENABLE Guarantee transaction with Oxbury Bank by £100m ($125.79m), bringing the total to £300m.

This increase will provide Oxbury with an additional £150m in lending capacity, promoting sustainability in the rural economy.

The transaction offers a pricing discount for lending that meets specific sustainability metrics. As of December 2024, approximately 14% of Oxbury’s portfolio qualified for the pricing discount.

Based in Chester, Oxbury Bank was launched in February 2021 and focuses on providing flexible lending and asset finance solutions tailored to farm businesses.  

The bank utilises its digital banking platform, Oxbury Earth, alongside a team of relationship managers with agricultural expertise. 

In under three years, Oxbury Bank’s drawn lending surpassed £1.1bn, and it attracted £2.3bn in savings deposits from farm businesses and consumers supporting the rural economy, achieving profitability in 2023. The bank plans to continue its lending to the sector in 2025.

Oxbury is supported by institutional agriculture and AgTech investors, having raised more than £162m.  

British Business Bank managing director of structured FI solutions Michael Strevens said: “Increasing this transaction by a further £100m demonstrates our commitment to supporting smaller businesses across the rural economy.

“We are delighted to see that 14% of the portfolio meets our sustainability metrics and look forward to seeing that percentage grow. We are excited to see the further growth that this partnership can provide to the sector in 2025 and beyond.”

Oxbury Bank co-founder and CEO James Farrar said: “We are thrilled to expand our partnership with the British Business Bank to increase lending to SMEs within the farming and food sectors.

“Once fully utilised, the full £300m ENABLE Guarantee will support £150m in extra SME lending, further enhancing Oxbury’s ability to positively impact farming and the rural economy. This funding also reflects our commitment to sustainability in the sector by 2025.”

Earlier this month, the British Business Bank also backed a senior facility of up to £100m provided by Paragon Bank to LE Capital.

The ENABLE Guarantee programme facilitated this, allowing Paragon Bank to support LE Capital in expanding financing for independent, smaller businesses and used car dealerships.