Oxbury Bank has announced it has secured £25m in capital funding to help the specialist agricultural bank accelerate support to farmers.
The company said it had secured £25m in Tier 2 capital funding with the investment made by British Business Investments.
Oxfobury said the new funding would support its forecast growth in lending across the food and farming industry, as farmers look for more flexible finance.
The specialist bank's strong performance since its February 2021 launch means it is forecast to break even by the end of this year.
The capital funding will enable the bank to support additional lending of £250m to small and medium farming businesses across the remainder of 2022 and 2023.
It follows on from a further £20m in new Core Tier 1 equity raised in July, with total capital raised and secured having now reached £93m.
Tim Coates, co-founder of Oxbury Bank, said the new investment from British Business Investments was "another exciting milestone in Oxbury’s development".
"Additional funding from British Business Investments will help accelerate Oxbury’s support for the rural economy," he said.
"[It will] help farmers and food producers addresses the twin challenges of food security and the transition to low-carbon nature-friendly production.
“Oxbury’s relationship-led approach, enabled by our proprietary Oxbury Earth Agtech banking platform, is essential in serving the needs of the small and medium business.”
Judith Hartley, CEO at British Business Investments added: “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.
"This commitment to Oxbury will help unlock up to £250m of additional finance for smaller businesses across the British farm and food sector, helping them to grow and succeed.”
