Oxbury Bank, a FinTech firm dedicated to supporting farmers, food production, and the rural economy, has secured a significant financial backing.
The British Business Bank has agreed on a £100m ENABLE Guarantee transaction with Oxbury. This substantial financial injection will provide protection to Oxbury’s existing portfolio of lending, facilitating an additional £45m in lending to SME agricultural businesses.
Oxbury, which launched in February 2021, offers tailored lending and asset finance solutions to meet the specific needs of farm businesses. The Chester-based bank utilises its proprietary digital banking platform, OxburyEarth, and a team of relationship managers with deep agricultural expertise to support its clients.
The funding will be utilised to originate around £45m of additional lending to SME agricultural businesses. This will be achieved through the capital benefit of the guarantee being implemented from day one.
In under three years, Oxbury has surpassed £750m in total committed and in-progress lending. The bank, backed by institutional agriculture and AgTech investors, has a goal of reaching a £1bn balance sheet in 2024. Additionally, it has drawn in £1bn in savings deposits from farm businesses and consumers eager to back the rural economy. Oxbury also takes a committed approach to Environmental, Social, and Corporate Governance (ESG) issues.
Oxbury Co-Founder and Chief Customer Officer Tim Coates said, “We’re delighted to be expand our relationship with the British Business Bank to support more lending to SMEs across the farming and food system. The ENABLE Guarantee will directly support a further £45m in lending to SMEs and is a further boost to the rapid progress Oxbury has made in becoming the bank of choice for farmers the length and breadth of Britain.”
Since its inception, Oxbury has raised over £120m in investment, including a £25m Tier 2 capital facility from British Business Investments in August 2022, supporting an additional £100m of lending to SME farming and food businesses.
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