British Business Bank agrees £500m ENABLE Guarantee with Oxbury Bank

The British Business Bank has agreed a new ENABLE Guarantee transaction of up to £500 million with specialist agricultural lender Oxbury Bank to increase access to finance for farming businesses across the UK.

The transaction will support term lending to small and medium-sized farming businesses looking to invest in their operations, improve productivity and deliver long-term growth across the rural economy.

It will also include a pricing discount for Oxbury lending that meets specified sustainability metrics, such as reducing carbon emissions or using renewable energy.

Under the structure, the British Business Bank will guarantee the senior position, while global investment firm Davidson Kempner Capital Management will provide the junior investment. Oxbury will retain a proportion of the credit risk across each underlying finance agreement.

It is the second ENABLE Guarantee bank transaction to include a junior investor and demonstrates how the structure can provide specialist banks with access to additional institutional capital.

The British Business Bank said the size and structure of the transaction reflected its increased risk appetite in supporting smaller farming businesses and represented its largest single-facility exposure to date.

The agreement builds on an existing relationship between the Bank and Oxbury. An initial £100 million ENABLE Guarantee was announced in November 2023 before being increased in July 2024 and again in February 2025, taking the facility to £300 million.

That transaction has facilitated more than £425 million of finance for over 400 small and medium-sized farming businesses.

Since 2022, the British Business Bank has also invested £35 million in Oxbury through Tier 2 capital facilities as part of its efforts to increase the supply and diversity of finance available to smaller UK businesses.

Business Secretary Jonathan Reynolds said: “Too many good businesses are held back because they can’t get access to the finance they need to invest and grow.

“Whether it’s buying new machinery, expanding the business or making plans for the years ahead, farmers need the confidence that finance will be there when they need it. This £500m ENABLE Guarantee will help make that happen.”

Michael Strevens, Managing Director, Structured Financial Institution Solutions at the British Business Bank, said: “This £500m ENABLE Guarantee with Oxbury Bank represents another significant step forward in our support for the farming sector and partnership with Oxbury.

“Bringing another investor into the specialist finance market further demonstrates how using our guarantees can leverage in institutional capital previously unable to access smaller business lending, helping to generate long-term growth for the UK economy.”

James Farrar, Co-Founder and CEO of Oxbury Bank, said the transaction represented an important milestone in the bank’s growth and its support for farmers, food producers and the wider rural economy.

He added: “The sector is facing both opportunities and challenges as businesses look to invest in productivity and the transition towards more sustainable farming systems. These investments often require significant capital today, with the benefits realised over many years through stronger yields, supply chains and improved business resilience.

“The British Business Bank has consistently demonstrated an understanding of the vital role agriculture plays in the UK economy, both now and for future generations. Their continued support enables Oxbury to expand our successful specialist lending model, helping more farmers access the competitive finance they need to invest with confidence and build a stronger future for British agriculture.”