Agtech bank Oxbury gets £25m boost to lending reserves
Chester-based agtech bank Oxbury has received a £25m boost to its banking reserves from British Business Investments (BBI).
Oxbury Bank said the credit facility will bolster its tier 2 capital – a required reserve for banks – and enable it to lend £250m to small and medium agricultural businesses until 2023.
The investment from BBI a subsidiary of the government-backed British Business Bank, follows on from the £20m core tier 1 equity that was secured in July, bringing Oxbury’s total raised to £93m.
Tim Coates, co-founder and chief customer officer of Oxbury Bank, said: “Additional funding from British Business Investments will help accelerate Oxbury’s support for the rural economy and help farmers and food producers address the twin challenges of food security and the transition to low-carbon nature-friendly production.”
Oxbury began lending in March 2021 and is regulated by the Financial Conduct Authority.
Judith Hartley, CEO, British Business Investments, said: “Specialist banks like Oxbury help diversify the UK’s smaller business finance market and, in turn, help smaller businesses across the UK to access the finance they need.”
Hartley was appointed CEO back in July, alongside Catherine Lewis La Torre becoming CEO of British Patient Capital.
Seperately, BBI announced today it is committing up to £10m in Lincolnshire-based Haatch Ventures.
The government last month announced a further £16.5m to fund research and development of agriculture tech.