British Business Bank has announced a £10m tier two investment in Shawbrook Bank, as part of its latest £75m capital raise.

This follows a previous £30m subscription to Shawbrook’s previous tier two note issuance in 2020.

The bank said that the tier two capital note investments aim to be a catalyst for recipient banks as they grow, increasing the supply and availability of finance to UK smaller businesses.

The capital raised will allow to enable Shawbrook to continue to support the growth of its chosen, specialist small business markets.

Managing director for direct financial institutional solutions at British Business Bank, Richard Bowen, said: "This £10m investment is our third tier two investment in Shawbrook Bank and follows a £150m ENABLE Build transaction in 2024, extending a successful partnership since our first investment in 2015.

"I am delighted to continue our work together to support diversity within the small business finance markets, helping fuel the growth of smaller businesses across the UK."

Chief financial officer at Shawbrook Bank, Dylan Minto, added: "We are pleased to have successfully completed the issuance of £75m tier two capital, strengthening our capital base to support our growth and strategic ambitions. We value the continued support from British Business Bank, with their long-term participation serving as a strong endorsement of our strategy and providing the capital foundation to further grow our SME lending, supporting businesses across the UK."

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