A renowned agricultural sector lender has recently announced a significant achievement in securing a fresh £100m loan guarantee from the British Business Bank (BBB), the UK’s economic development bank. Oxbury Bank, which specializes in providing financial assistance to farmers, food producers, and the rural economy, has successfully signed a new agreement with the BBB that will be made public in the coming days.
According to reliable sources familiar with the matter, the extended partnership between Oxbury and the BBB, which doubles the previously guaranteed amount, will greatly accelerate the lender’s lending activities in the sector. Furthermore, one insider has revealed that the new deal includes a provision stating that loans that meet environmental, social, and governance (ESG) standards will be eligible for reduced pricing.
The initial £100m loan guarantee was among the first to be approved under the BBB’s ENABLE program, which aimed to safeguard an existing portfolio of lending, providing an immediate capital benefit to Oxbury. In terms of business expansion, Oxbury has successfully secured support from a syndicate of technology investors since its establishment in 2021, raising over £120m in funds. The company is also reportedly planning to raise additional equity in the near future.
Insiders in the industry have commended Oxbury for its impressive progress, with one even stating that it may only trail behind Oaknorth, a digital bank, in terms of speed in reaching profitability. Founded in Chester, Oxbury prides itself on being the first bank in over 90 years to exclusively cater to the needs of farmers, following the establishment of the Agricultural Mortgage Corporation in 1928.
Both Oxbury and the BBB have declined to comment on the matter. For more business news, please visit our website.
