British Business Investments Announces £20M Tier 2 Investment in Secure Trust Bank
British Business Investments today announces a new £20m subscription to specialist lender Secure Trust Bank plc’s £90 million Tier 2 note issuance. The investment follows a previous £25m subscription to Secure Trust Bank’s £50m Tier 2 note issuance in 2018, which has now been repaid.
The £20m subscription has been provided through British Business Investments’ Investment Programme, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.
Secure Trust Bank is an established specialist bank founded in 1952, focusing on selected segments of the business and consumer finance markets. Funds raised from the Tier 2 issuance will enable Secure Trust Bank to increase its volume of lending, including to smaller businesses, supporting the bank’s growth over the medium term.
British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of a range of finance providers. Since it was established in 2014, British Business Investments has committed more than £3.3 billion to providers of finance to UK smaller businesses.
Judith Hartley, CEO, British Business Investments, said: “This £20m investment in Secure Trust Bank supports British Business Investments’ mission to increase the diversity and supply of finance for smaller businesses in the UK. Independent operators like Secure Trust Bank help diversify the UK’s smaller business finance market and provide more choice for businesses. Following our earlier subscription in 2018, we are pleased to be working with Secure Trust Bank again to support increased smaller business lending across the UK.”
David McCreadie, CEO, Secure Trust Bank, said: “Secure Trust has shown sustained commitment to helping UK businesses through its real estate finance, commercial finance and motor vehicle dealer stock funding financial products. At 30 June 2022, our lending to UK businesses was £1.5 bn of a total customer lending book of £2.8bn.
“We have demonstrated our capability to capture significant growth opportunities across our diversified specialist lending businesses. We are pleased with the support we have received from British Business Investments and new investors in our new Tier 2 issuance. With this enlarged regulatory capital base we are strongly positioned to continue to help consumers and businesses fulfil their ambitions.”
